Bid buzz helps AIM bounce

The hum of deal talk seems to have instilled renewed bounce in AIM after a morose few months. The Index advanced 24.6 points to 985.2 this week – the biggest weekly rise since early March. The FTSE 100 was less buoyant but lumbered up 13.7 points to 5058.2.

Shares in Documedia Solutions, the restructured print management venture, almost doubled to 11.5p after the company revealed it had agreed to acquire, via reverse takeover, the parent company of London Digital Printing, Tangent Communications.

Michael Green, former boss of Carlton Television, set up Tangent with his brother 30 years ago, and the company is currently run by his nephews, Nicholas and Timothy, who will become join chief executives of the new company.

The launch of a £72.7 million bid by Torex Retail for profitable AIM-listed peer XN Checkout topped off a hectic few weeks for Torex, having just completed two smaller acquisitions and secured a brace of significant contracts.

Torex sells its electronic point-of-sale software to the retail sector, whereas XN generally delivers its systems in complimentary sectors, such as hospitality and gaming. This may explain XN’s appeal to Torex, whose shares are up seven per cent in the week at 105.5p. XN, which has announced two contract wins itself this week, stands 6.2 per cent higher at 257.5p.

Takeover talk

Shareholders in Private & Commercial Finance enjoyed a 64 per cent price leap to 32p, prompting the company to admit it had received a tentative approach, though ‘no substantive discussions have yet taken place’. The company intends to release a pre-close trading update before the end of June.

Andrew Regan’s shell Corvus Capital confirmed on Monday that it might make a bid for FTSE 100 insurer Royal & Sun Alliance, as one of a number of potential opportunities being evaluated. The shares rose 1p on the day to 11.75p. However, the co-operation of R&SA ‘was not forthcoming’, leading Corvus to decide by Friday not to continue with its offer. The shares returned to 11p.

The resignation and replacement of Frank Timis as chairman of Regal Petroleum has restored a modicum of investor confidence in the shares. Sir Peter Heap was appointed non-executive interim chairman, Dr Rex Gaisford chief executive and experienced US oilman Richard Hardman exploration director. The shares regained 54 per cent to 88p this week, a long way off their March value of more than 500p, when an unproductive Greek well cast doubt on their worth.

Yoomedia blues

A profit warning at Yoomedia sent the shares down 53 per cent for the week, even after a 24 per cent bounce today, to 4.25p. The interactive entertainment provider, whose chief executive David Docherty stepped down earlier in the month, admitted that its games and gambling division had experienced lower than expected profit growth, meaning the results for this calendar year will be ‘significantly lower than anticipated’.

Online gaming punt Empire Online, which provides marketing services for gaming companies, floated on AIM this week, falling 22p from the 175p price at which it raised £123.5 million from institutions. City doubts over the future of online gambling in the US, Empire’s major market, hit the shares, especially after potential FTSE 100 entrant Party Gaming, a major client, warned of potential regulatory risks.