Sharewatch W/E 6/05/97

Scottish Media’s announcement on Monday that it is negotiating a takeover of Grampian Television (subscribers see Scottish Media Moves On Grampian) benefited both companies throughout last week. Scottish initially rose 15 to 690p and then rose consistently to close at 698.5p on Friday. Grampian performed even better, soaring 40 to 302.5p on the Monday and then rising during the week to close at 310.5p on Friday.

There was also activity in the advertising agency sector, with WPP taking a 14% share in CIA Group (subscribers see WPP Takes A Slice Of CIA) for around £13.5m on Wednesday. Many regard this move as the first step in a WPP takeover and it was well received by the City. WPP rose 3 to 250p and finished on Friday at 253p while CIA strengthened 9 to 183.5p and then rose again on Thursday and Friday to close at 188p.

Tuesday’s rumours that Abbott Mead Vickers’ subsidiary Leagas Delaney was planning a management buyout (subscribers see Management Buyout Talks At AMV) was met with more or less indifference in the market. AMV’s price was static on Wednesday, rose 1.5p on Thursday and then fell back 1p on Friday.

Though EMAP reported strong growth on Monday (subscribers see Profits Up 40% At EMAP), the City appeared unimpressed. The group’s share price dropped throughout the week, finishing 771.5p on Friday, even though it started the week on 787.5p.

United News & Media had a good week, rising consistently from 765p on Monday to reach 781.5p on Thursday, though it softened 3 on Friday to 778.5p. Part of the strengthening may be attributable to UNM buying the PR News Service of Chicago from The Chicago Tribune and The Chicago Sun Times on Wednesday (subscribers see UN&M Moves Into Chicago).