Liberty International

Financial daily City AM said Cinven, advised by Goldman Sachs, has for three months been eyeing a bid to take the FTSE 100 company private. Wolseley shares gained nearly 7 pct or 84 pence to 1,396. In earnings news, Liberty International, which converted to a real estate investment trust (REIT) on Jan 1, took on 4 pence to 1,294 after posting a rise in full-year net asset value and pretax profit, and said it is well placed to prosper on the strength of its underlying business. Merrill Lynch said the adjusted NAV of 1,327p came in below its flagged 1,395p, adding it was "expecting a better uplift" at its Covent Garden and Manchester Arndale sites. Nevertheless, the broker reiterated its 'buy' advice and said it thinks the outlook for UK regional shopping centre market remains positive. In broker-driven news, Barclays gained 5 to 780 after UBS reiterated its 'buy' advice on the stock and hiked the price target to 900 pence from 825 ahead of the bank's full-year results due next Tuesday. UBS pointed out to clients that the bank indicated with its November trading statement that it remained comfortable with the market's 22 pct EPS growth forecast for 2006. Meanwhile, high street fashion retailer Next took on 20 to 2,044 after UBS hiked its price target for the group to 2,350 pence from 2,150 as the broker sees an improvement in the content of the group's recovery plan. Centrica added 1 to 366-1/4 after Lehman Brothers raised its target to 320 pence from 275 with an unchanged rating of 'underweight'. On the downside, BSkyB slipped 2-1/2 to 558 after Teather & Greenwood downgraded its stance to 'reduce' from 'buy' to reflect continual long term investment in its network and operations. Drax was also lower, off 15 at 658 after Credit Suisse reiterated its 'underperform' rating and 690 pence price target saying forward sales will not only will be hit by lower gas and carbon prices but also higher coal prices. Cadbury Schweppes slipped 11 to 560 after news Morgan Stanley cut forecasts on the confectionary giant added to ongoing jitters over the group's recent series of product recalls. The broker also lowered its 2006 and 2007 estimates to account for an expected hit from foreign exchange, and nagging problems in Nigeria.