Scots Stocks: Raising the Standard Could Tip the Balance in Bid War for Resolution

By NO BYLINE

STANDARD Life shares rallied yesterday climbing 3 per cent to 284.5p. The price gives the company’s cash-and-share bid for Resolution a tiny edge over Pearl’s 720p all-cash bid. Standard Life has claimed that if it could convince investors of the industrial logic of the deal its share would rise to give its bid an edge over Pearl. However, analysts spoken to believed the move was a reflection that the City expected Pearl would win the battle.

Other major Scottish movers included Aberdeen transport operator FirstGroup which rose 3 per cent to 795p, a fresh record high. The company, which will present its interim results next week, has risen strongly on positive sentiment to its recent acquisition of Laidlaw International which beefs up its already leading position in the US bus market.

Brewer Scottish & Newcastle also hit a new high, climbing 14.5p to 788p as the fight for Russian venture BBH heated up. Oil stocks were back in vogue with crude prices spiking on lower-than-expected US reserves. Scotland’s largest oil and gas company Cairn Energy recovered strongly from the previous session’s fall, gaining 74p or 3.25 per cent to 2,353p, while Melrose Resources gained 7.25 per cent or 25p to 370p, Dana Petroleum rose 19p to 1,290p and Venture Production lifted 21p to 792.5p.

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