Market report
CUSTOS
The stock market is suffering from indigestion. Four firms of brokers have now been told by the Stock Exchange Council to get their books up to date and ready to be inspected. In the circumstances, it has been no surprise to see share prices slipping back, more from lack of demand than anything else.
The takeover scene has been brightened by an unexpected bid from Associated British Foods for Allied Farm Foods, the Buxted chicken company. The shares rose by more than lOs on the bid—all in loan stock, to a total value of £21 million. John Holt has also been approached, though by whom is not yet known. This Merseyside firm of West Africa merchants diversified some years ago into the wine trade, buying off-licences and also the (claret) Château Rausan-Segla. It was a well-timed move, for the Nigerian civil war played havoc with Holt's traditional business and took the company into the red. But this year will show a sharp re- covery. The shares put on 5s (from 12s 6d) on Tuesday. Other bids include one of £7 million from Guthrie for T. F. Firth, the carpet makers; one of £2 million for Coleman, who brews Win• earn's; and one from United Biscuits which puts a price of £31 million—against net asset of £11 million—on Kenyon Son and Cravat, the privately owned firm which is the market leader in salted peanuts. Company news has in general been good: strong figures from Consolidated Gold Fields and British Home Stores, a return to the black in the second half of United Glass's year. But Crane Fruehauf, the trailer company whose stock has been fashionable, has quarrelled with its managing director and part-architect, Mr Boden. The market rightly disliked this news
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