A press report suggesting that a group of US banks were putting together a syndicate to raise a package of debt worth around £36billion to help fund a takeover of a major European blue chip company prompted hefty buying on Tuesday of Peroni brewer SABMiller (65p off at 3395p) and oil and gas producer BG Group (8.5p easier at 1234p).
But both succumbed to profit-taking yesterday as professional punters realised they could have picked on the wrong stocks.
Their attentions turned towards consumer goods goliath Unilever which was chased up to 2699p on hot gossip that the Anglo-Dutch giant is the one being stalked by a consortium of private equity players which have been given the green light by bankers to launch a £40 a share cash break-up of the group, which embraces such brands as Dove soaps to Hellman’s mayonnaise and Ben & Jerry’s ice cream. Shares fell 7p to 2678p.
The idea is that Unilever could be broken up with a large proportion of its 400 brands sold to its largest competitors Nestle and Procter & Gamble