Grafton moves higher on bid for Heiton Holdings

MARKET REPORT: The Irish market finally found some corporate news to digest yesterday with Waterford Wedgwood producing figures that disappointed even lowered expectations and Grafton's long-awaited announcement of a bid for rival Heiton Holdings.

Grafton, which has been riding high in the market following its recent interim trading statement, moved ahead again following news of the bid, which was swiftly rebuffed by Heiton.

Dealers said the €6.35 a share offer by Grafton, which started stake-building in Heiton back in 1999, looked like a good deal for both parties. Despite its rejection, dealers said the deal was likely to go through eventually.

"There is nothing Grafton does not know about Heiton," one said.

Grafton traded at a record high yesterday, closing five cents higher at €6.50 with Heiton 10 cents ahead on €5.30.

Waterford Wedgwood was going the other way after figures that did little to cheer its army of small shareholders. The shares, which have been languishing, drifted 3.5 per cent to 16 cents, with traders saying the figures - already guided lower by company management - had not impressed the market.

Elsewhere, there was strong interest in Bank of Ireland, which rose nine cents to €10.67 despite going ex-dividend on Wednesday.

Despite very low volumes, Irish financials in general outperformed their peers. AIB rose one cent to €12.26, although Anglo Irish Bank slipped a cent to €13.14 despite news of its €750 million bond issue.

Irish Life & Permanent advanced two cents to €12.72, although volume was again weak.

Among the smaller stocks, CPL Resources, which announced the purchase of a specialist recruiter of scientific staff, improved four cents to 90 cents.

But dealers said the market in general was becalmed by an exodus of London traders to soccer's European Championships in Portugal.