The City has been understanding of the many companies that had a look - and then recoiled - at failed contractor Rok last week. Even Mears, which was the first off the mark to salivate over Rok鈥檚 remains, but then perhaps wisely decided it didn鈥檛 fancy the prospect, managed to finish the 10 days since Rok failed up a smidgen
鈥淢ears and Rok wasn鈥檛 such an obvious fit, so the markets have shrugged it off,鈥� says KBC Peel Hunt鈥檚 Andrew Nussey of Mears鈥� volte-face.
Perhaps the circling scavengers took a nervous backward glance at Morgan Sindall, whose price dipped after it admitted on 9 November that it had only gained 拢142m of revenue, 拢60m less than expected, from its 拢28m deal to acquire almost 100 Connaught contracts in September.
Obviously not a firm to be twice shy, John Morgan鈥檚 company also ran the rule over Rok in the fortnight before its demise, but did not like the amount of debt it saw. Not hugely surprising, says Andrew Brown of Panmure Gordon, as executives 鈥渄idn鈥檛 quite have their hands full with Connaught, but they need some time to sort those contracts out鈥�.
Meanwhile, insiders are adamant that there is nothing in rumours that Apollo is being readied for a sale in the new year by a Pricewaterhouse Coopers team. The consultant has completed a strategy review of the company, according to a source close to the review, and is retained as adviser, but selling off the business is 鈥渘ot really an option鈥� and the company is in good shape. 鈥淭hey鈥檙e waiting for the market to calm itself down and sort itself out,鈥� he says.
Elsewhere, an optimistic statement was issued to the City from Interserve, who predicted a better second half of the year. This steadied the jitters that had afflicted its share price earlier in the week. 鈥淭here was definite relief,鈥� says Nussey, 鈥渂ut most observers will be more interested to see how 2011 pans out. This year has been discounted already, but in 2011, the question is what the dividend will be.鈥�
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