Dublin market closes higher

The Iseq index of Irish shares closed up more than half a per cent, outperforming many of the major European indices, where stocks…

The Iseq index of Irish shares closed up more than half a per cent, outperforming many of the major European indices, where stocks slipped as weaker metals prices pushed mining stocks lower.

In Dublin, the talking point of the day was Norkom, after BAE Systems, Europe's largest defence company, announced that it was bidding to buy the entire share capital of the group for €217 million in cash.

In a statement to the stock exchange, it said it had acquired 14.7 per cent of its issued share capital at a price of €2.10 per share and had obtained undertakings to buy a further chunk, taking its total interests in Norkom to 57.8 per cent.

Norkom, which makes financial crime and compliance software for the financial services industry, trades on the ESM part of the Dublin market and closed up 35 per cent at €2.09.

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The move also had an effect on TVC Holdings, which owns a 28.9 per cent stake in the firm, valued at €41.7 million by BAE's offer. Its stock climbed 21 per cent to 83 cent.

Drinks group C&C's interim trading statement was positive enough for it to hold onto recent gains and the stock closed up 1.3 per cent at ¤3.58, even while analysts at Citi wrote that they remained concerned about the "very tough environment" in which the company operates as a result of austerity measures introduced in the UK by the Cameron government.

Building materials group CRH, the largest component stock in the index, closed up 2.6 per cent at €15.17, having traded up at ¤15.30 during the morning.

There was also a strong gain for fruit group Fyffes, which closed up 8.5 per cent at 41 cent.

The financial stocks all went into retreat, with Bank of Ireland the hardest hit, declining 5.5 per cent to 34 cent, while Paddy Power was also a faller, finishing down 2.6 per cent at €29.03.

Independent News & Media advanced 3.9 per cent to 59 cent.