Shares in GB Group Plc rise more than 7 percent to touch a two-year high after the British anti-fraud software provider says it sees full-year profit beating current market estimates and forecasts first-half profit to be substantially ahead of its prior view.
'This improvement suggests better visibility for a return to growth in the DataAuthentication segment, and an acceleration of growth for DataSolutions, both of which could herald an upward re-rating,' says Martin Lister of Edison Investment Research.
The analyst raises his estimate for GB Group's pretax profit for fiscal 2011 to 1.6 million pounds from 1.4 million pounds.
Shares in Gas Turbine Efficiency fall as much as 22 percent after the company says a strategic investor, who was in advanced talks to buy a significant stake in the company, walked away from the potential deal.
'Discussions have been going on for some months, so not concluding a deal at this time is clearly a negative,' says analyst Steven Fawkes of Matrix Group.
Fawkes adds that as the company primarily sells its products to large utilities and energy firms, it would gain a wider access to the market through a credible strategic investor.
Shares in Clipper Windpower gain 30 percent, making the wind turbine maker the second biggest riser on London's junior AIM market, after it agrees to a takeover by United Technologies Corporation.
'For Clipper this buyout by UTC is phenomenal. It gives them a significant cash injection to fight against some of its peers in this difficult environment,' says Libertas Capital analyst Titus Menzies.
The all-cash deal values Clipper at 139.5 million pounds.
BlueBay shares surge more than 30 percent after the specialist credit asset manager agrees to a 963 million pound takeover by Royal Bank of Canada, with the stock trading a few pence above RBC's offer price.
RBC is offering 485 pence per share to buy BlueBay, and BlueBay shares are up 30 percent to 488.5 pence.
Nevertheless, analysts at both Oriel Securities and Numis Securities say the acquisition looks like a done deal.
'In our view, with significant staff ownership, board approval, 20.5 percent irrevocables and a decent premium this looks a 'done deal,'' Numis Securities writes in a research note.
The broker says the deal values BlueBay at 18 times its expected 2011 earnings.
Numis adds that other companies might now face takeover speculation, such as Aberdeen Asset Management, Tullett Prebon and moneysupermarket.com.
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