UK small caps get boost from new takeover rules

 
Elizabeth Fournier
SEVERAL UK small-cap companies saw their shares boosted yesterday, a day after new takeover rules forced potential targets to tell the market the names of their prospective buyers.

Arena Leisure, which had a market capitalisation of around £132m at yesterday’s close, saw its shares rise by 17 per cent during trading after it said it was in talks with Reuben Brothers, the private equity and venture capital group run by brothers David and Simon Reuben.

A day earlier Arena had told the market it was exempted from the new disclosure rule, but mounting speculation led the company to confirm the approach yesterday. The Reuben Brothers now have until 18 October to make an offer for the company.

Travelzest also closed up almost five per cent yesterday, after saying after the markets shut on Monday that it was in talks with Canadian firm Red Label Vacations.