Shares in transport firm Dart Group sink as much as 17 percent -- the biggest mainlist faller of the day -- on news that Irish low cost airline giant Ryanair is to open a new base at Leeds Bradford airport in north-east England.
Leeds Bradford is the headquarters of Dart's leisure airline Jet2.com.
'Ryanair is going to operate from the mainstay of Jet2,' a trader says.
Shares in cannabis-based drug specialist GW Pharmaceuticals Plc rise as much as 18 percent as investors follow in the footsteps of high profile U.S specialist fund Great Point Partners, which bought a multi-million pound stake in the company last week.
'It shows that where Great Point leads, other investors have followed, the share price rises are on the back of that,' says analyst Paul Cuddon at KBC Peel Hunt.
Shares in SnackTime, the snack and chilled drink vending operator, jump 11.8 percent after the company posts a 64 percent increase in pretax profit, which prompts Arbuthnot to reinitiate its coverage with a strong 'buy' rating and 120 pence target price.
'SnackTime's final results to March 2009 were very positive given the difficult economic environment,' the broker says in a note.
'We would expect SnackTime to be highly cash-generative and profitable once the bulk of its estate is over two years old, which will happen in this financial year.'
Shares in Friends Provident gain 1.3 percent to 75.95 pence as the life insurer recommends an 1.86 billion pound takeover bid by Resolution after having earlier rejected an initial offer.
In reaction, Panmure Gordon raises its rating for Friends Provident to 'buy' from 'hold' and increases its target price to 80 pence from 75.
The broker points out that the terms of the deal are as anticipated, following the announcement made on Monday, of 0.9 shares in Resolution for every 1 held in Friends Provident, valuing each at around 79.4 pence.
Panmure Gordon notes that the offer price is a 31 percent discount to Friends Providnt's adjusted European Embedded Value (EEV) as at June 30, which it says is disappointing on the face of it.
However, the broker says, it views Friends Provident as 'strategically challenged on its own' as highlighted by the insurer's interim results announced also on Tuesday.
Resolution shares fall 4.5 percent on the takeover move to 85.25 pence.
Shares in British laundry and workwear group Davis Service Group rise 1.7 percent as Investec upgrades its stance on the stock to 'buy' from 'hold', calling the company a 'resilient performer in challenging times'.
Investec raises its target price for Davis Service to 450 pence from 310 after upping its estimates for the group ahead of first-half numbers, due on August 28.
The broker points out that management action at Davis Service to improve efficiency and cut costs has helped cushion the downturn, but also increases operational gearing in an upturn.
Investec adds that an attractive 5.6 percent forecast yield is supported by good cash generation and a sound financial position.
Shares in British medical food company Provexis rise as much as 28 percent on Tuesday, meaning they have almost tripled in value since Friday, reflecting investor hopes over a possible deal for its Fruitflow blood circulation product made from tomatoes.
Analyst Jacob Plieth at Edison Investment Research says he does not believe that the share price move is due to Tuesday's statement that the company has started tests of its plantain product as a treatment for Crohn's disease.
'It's not the statement that's been announced today, it would be something much bigger in my opinion,' says Plieth. 'People are expecting something of a very transformational nature, be it a new big deal or something.'
In June, Chief Executive Stephen Moon told Reuters in an interview that he was in advanced talks with one of the world's top three ingredient manufacturers for a deal over Fruitflow.
However Provexis issued a statement on Monday in reaction to the movement in its share price saying that the final authorisation procedure for Fruitflow by the European Commission was still under discussion.
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