LONDON (Thomson Financial) - UK small caps rose to a session high at midday, lifted by strength among blue chips, with Mediasurface soaring more than 50 percent following Thursday's late news of a bid approach.
At 11.45 a.m., the FSTE Small Cap index was 12.2 points higher to 3,111.6., as the FTSE 100 index rose 26.0 points to 6,076.7.
Mediasurface led the risers, 3-1/2 pence up on 10 pence, as it said late on Thursday that it has received a preliminary offer approach 'from a UK company', which may or may not lead to an offer for the company.
Bid news also lifted IBS OPENSystems, 20-1/2 stronger on 157-1/2 as it said it received approaches from third parties which may or may not lead to an offer being made.
Independent Resources stayed 26-1/2 up to 99 following news that Italian multi-energy group ERG Power & Gas is to become a partner in the Rivara project.
ERG will invest 9.5 million euros in cash into a new joint-venture company in exchange for a 15 percent equity interest.
It prompted Seymour Pierce to more than double its price target on Independent Resources to 219 pence from 100, as it kept 'buy' on the stock.
Financing news kept PetroLatina Energy 30 percent stronger, up 2 to 8-1/2, as Colombian private equity firm Tribecapital Partners agreed to invest $25 million in the company to develop Petrolatina's exploration prospects and producing assets in Colombia.
It will enable the oil and gas exploration company to enter the second phase of its development programme in Colombia, increase cash flow dramatically, and help develop and commercialise its reserves.
Elsewhere, Axon Group soared 36-1/2 to 418 as it said it is hopeful for higher first-half revenues, prompting Panmure Gordon to up its 2008 EPS estimate for the group while keeping a 'buy' rating on the stock.
Pendragon was 0-1/4 a penny firmer to 38-1/4 as it gave a positive update, which prompted KBC Peel Hunt, Citigroup and Panmure Gordon to keep 'hold' stances on the group.
Medical devices maker DawMed Systems stayed 0-3/4 a penny higher on 5 as it said the first half has exceeded its expectations.
Positive results also helped Narborough Plantations, 5 up to 70, with the group posting more-than-doubled first-quarter pretax profit, as sales soared on high fruit prices.
In deal news, Cyan Holdings rose 0.375 a penny to 5-1/4, as the fabless semiconductor company signed a global distribution and stocking agreement with Mouser Electronics Inc.
Vividas Group stayed up 1 to 15 as the developer and provider of video streaming technologies launched the VivStream Video Platform.
Adventis stayed 0-1/4 up on 28-3/4 after Adventis Health was appointed by Roche Products to develop a compliance training programme using e-learning and other web-based tools for its UK Rx employees.
It is Adventis Health's sixth contract win in the last eight weeks, which equates to aggregate fees of more than 450,000 pounds.
Mouser and affiliate TTi are part of Berkshire Hathaway Group, whose chairman and CEO is U.S. investor Warren Buffett.
A broker upgrade bolstered Alizyme 2-1/4 to 30, with FinnCap upping the stock to 'hold' from 'sell'.
Turning to the losers, Gold Frost shed more than 50 percent, down 9-3/4 to 7-1/2, as it was announced that its board is to meet at an EGM on May 20 to approve the cancellation of the admission of the company's shares to trading on AIM.
Elsewhere, estate agent Humberts Group fell 1.125 to 5-1/4 as it warned on profits.
The group said current mortgage market difficulties lead the board to believe there will be little improvement in the volumes of residential sales for the remainder of the financial year, which is likely to hit the group's financial results for the remainder of the financial year.
TMN Group fell 5-1/2 to 47-1/2 as it too warned on full-year profits.
The group said it expects its full-year pretax profit will be within 10 to 15 percent of management expectations following a decline in demand at the email marketing planning and buying agency.
But it added that talks for a possible offer for the company continue.
In other news, Ascent Resources descended 0-3/4 to 5.875 having abandoned TIK-1, one of two exploration wells in Szolnok, central Hungary, in which it has a 27.5 percent interest.
Victoria Oil & Gas clawed back some earlier losses to be just 0-1/2 a penny off on 18-1/2, following news a civil claim has been brought against Kazakh subsidiary Victoria Energy Central Asia, concerning a transfer of the subsoil licence at its Kemerkol project, prior to Victoria's ownership.
Finally, management changes saw Hightex Group drop 0.375 a penny to 3-3/4, as CEO Klaus-Michael Koch was removed with immediate effect.
The company said non-executive chairman Charles DesForges will be involved in the company's day-to-day running as executive chairman as an interim measure. hannah.benjamin@thomsonreuters.com hmb/rw COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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