Hot Small Caps - Pub groups boosted by Punch bid report

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Hot Small Caps - Pub groups boosted by Punch bid report

04/08/2008 17:12

London (Reuters) - Following is a round-up of key small cap movers on the London stock market on Monday.

9:56 a.m. - Pub groups boosted by Punch bid report

Shares in pub groups such as Mitchells & Butlers , Enterprise Inns and Whitbread are in demand after Punch Taverns shares surge after the Daily Mail says buyout group CVC Capital Partners is weighing up a bid approach for the company. Punch and CVC both decline to comment.

"Activity is certainly increasing in pub stocks as we see renewed bid speculation for the likes of Punch Taverns," says Manoj Ladwa, a derivative trader at TradIndex. "Although we have heard these rumours before, there is very rarely any smoke without fire, and now would be a good time as any for a cash-rich fund to be buying a stake in one of these companies."

Punch soars 7.2 percent, but it is still down 64 percent for the year.

Within the sector, Mitchells & Butlers advances 4.4 percent, Enterprise Inns put on 0.7 percent, Whitbread adds 1.4 percent, Greene King gains 2.1 percent, Marstons climbs 5 percent and JD Wetherspoon surges 5.5 percent.

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