Shanks tipped for takeover; MARKET REPORT.(Business; Opinion, Columns)

MUTTER from the gutter suggests that a cash rich private equity player is ready to get down and dirty again at waste management group Shanks, 1.45p better at 99.85p.
Chief executive Peter Dilnot only started work at the group's Milton Keynes headquarters yesterday but his first real task could be defending it against another corporate attack.
Back in March 2010, long running takeover discussions with private equity firm Carlyle collapsed after the US company reduced its indicative offer price to 120p from 135p a share, or [pounds sterling]535.5m, proposed in October 2009.
Dealers now hear that a private equity player, possibly old foe Carlyle, has bid Schroders for its 17pc stake in Shanks and is ready to launch a full-scale offer at up to 140p a share.
Shanks in November reported excellent interim results, showing a 24pc rise in pretax profits to [pounds sterling]20.8m and a 10pc dividend increase following strong growth in the UK and Canada.
Broker Charles Stanley Securities is a fan and has a target price of 135p. It believes Shanks remains a unique asset and the investment case remains compelling with regulatory driven growth that can deliver high returns as waste is diverted from landfill.
After the best January for European equities since 1998, February got off to a blazing start. Strong manufacturing data which indicated that a double dip recession will be averted, better-than-expected Chinese factory data and a general belief that at last a solution to the Greek debt crisis is imminent, helped share prices soar.
Fund managers piled into blue chips and the fabulous Footsie climbed 109.11 points to 5,790.72, while the FTSE 250 jumped 251.67 points to 11,021.02. Wall Street, which enjoyed its strongest January since 1997, advanced 160 points more in the early stages after the pace in the US manufacturing sector last month rose to highest level since June.
International asset management group Schroders led the advance with a gain of 126p at 1576p.
Bob Diamond's Barclays rose 11.55p to 224.1p despite a Shore Capital sell recommendation ahead of the full year results on February 10. The broker feels the majority of the group's profits are derived from low quality investment banking earnings, it has significant 'PIIGS' exposure (notably Spain and Italy) and it is the most exposed of the UK banks to regulatory headwinds.
International Power added 3.3p at 338.7p as punters switched on to vague gossip that GDF Suez is considering buying the outstanding 30pc of the group's equity it does not already own.
Responding to a Goldman Sachs 'conviction buy' recommendation, luxury goods group Burberry strutted its stuff with a gain of 65p at 1407p.
Online grocer Ocado rose 11.05p to 98.15p on continuing bid speculation and the further closure of some sizeable short positions. Oriel Securities says it is unlikely that Wm Morrison will bid and the brilliant but unjustified run since the Christmas trading statement is a great opportunity to sell.

Vague private equity takeover gossip lifted office rental group Regus 7.35p to 99.35p. A revival of bid hopes also helped shares of the London Stock Exchange climb 47p to 917p. Two Arab investors still hold over 35pc of the equity.
Former Wall Street banker Hans Hufschmid is laughing all the way to the bank after GlobeOp Financial Services jumped 75.5p to 430.5p in response to an agreed [pounds sterling]508m or 435p a share cash offer from US buy-out firm TPG Capital. Hufschmid founded and owns 13.7m - or 13pc - of the leading supplier of back office supplies to hedge funds. He helped float the company at 230p in mid-2007 and now walks away with almost [pounds sterling]60m.
Almost 90m shares in Expansys, 0.33p better at 1.75p, were traded after Cenkos cleared out a seller. Dragons Den entrepreneur Peter Jones owns over 41pc of the global online retailer of wireless and consumer technology.
Mobile payments company Bango rose 8.5p to 95p after confirmation that it is in the final stages of negotiations regarding an agreement to provide payment services to a leading platform for mobile applications.
APR Energy blew a fuse at 1023p, down 55p, after the Tokyo Electric Power Company, the Japanese concern that suffered extreme damages at its Fukushima Daiichi nuclear power plant after a tsunami hit it in 2011, terminated part of its contract with the temporary power solutions provider. The UK company emphasised that any impact on its revenues this year would be marginal.