FTSE 250 movers: Enodis rises on bid-war hopes

08.05.2008

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Enodis, which last month accepted an offer by Manitowoc, today agreed to be taken over by Illinois Tool Works (ITW) for £1.03bn.

Under the terms of the offer, shareholders will receive 280p in cash for each share, a 15% premium to Wednesday's 243.5p closing price.

In addition, Enodis, which makes restaurant equipments for McDonalds, will pay a dividend of 2p per share in lieu of an interim dividend in respect of the financial year ending 30 September 2008.

Enodis agreed last month to be taken over by Manitowoc for around £945m. The US firm, which makes ice-cream fridges, offered to pay 258p per share. Manitowoc said today that it is considering its position and will make a further announcement in due course.

Shares in the group rallied 17% to 286.50p following today's news, suggesting that investors are hoping that a bidding war will break out between ITW and Manitowoc.

No-frills airline easyJet gives back some of the gains seen yesterday when chief executive Andy Harrison said bookings for summer showed no sign of any economic slowdown despite the impact of rising fuel costs.

Harrison said that an economic downturn would help easyJet gain market share from its rivals. He also rued the impact of higher landing charges at Gatwick and Stansted airports describing them as "a sign of the failure of UK airport regulation".

Gatwick and Stansted are run by BAA, which is owned by the Spanish construction company Ferrovial. Easyjet said last month it would hold back increases in landing charges imposed by BAA pending a legal challenge.

FTSE 250 - Risers

Enodis (ENO) 286.25p +17.56%

Imperial Energy Corporation (IEC) 928.00p +7.84%

Signet Group (SIG) 77.00p +6.94%

DSG International (DSGI) 69.25p +5.32%

Quintain Estates & Development (QED) 431.00p +5.12%

Renishaw (RSW) 767.00p +5.07%