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U.K. Stocks Including Enterprise, BT Gain; AstraZeneca Declines

By Chris Fournier and Bryce Elder

Dec. 23 (Bloomberg) -- U.K. stocks including Enterprise Inns Plc, Britain's biggest pub owner, rose after UBS AG raised the company's share-price forecast by 10 percent.

AstraZeneca Plc, Europe's No. 3 drugmaker, slipped after it was reprimanded by the U.S. Food and Drug Administration for underplaying risks linked to its Crestor cholesterol drug in an advertisement.

The FTSE 100 Index added 3.5, or less than 0.1 percent, to 4780.9 as of 12:52 p.m. in London. The FTSE All-Share Index added 2.08, or less than 0.1 percent, to 2392.04.

BT Group Plc, Britain's biggest phone company advanced after its proposed purchase of Infonet Services Corp. won approval from U.S. antitrust authorities.

AstraZeneca declined 22 pence, or 1.2 percent, to 1,849 pence. The U.S. drug regulator told AstraZeneca in a Dec. 21 letter posted online today to stop using an ad saying the FDA is confident of Crestor's safety and effectiveness.

Reuters Group Plc, the world's largest publicly traded provider of financial information, climbed 1.5 pence, or 0.4 percent, to 380.5 pence after Morgan Stanley raised its price target for the shares by 16 percent to 400 pence.

Patrick Wellington, an analyst at Morgan Stanley, cited ``more optimistic'' assumptions on Reuters' 2006 sales growth, as well as the ``potential for a cash return'' if the company sells its Instinet Group Inc. business.

Bloomberg LP, the owner of Bloomberg News, competes with Reuters in providing news, information and trading systems to the financial-services industry.

The following stocks are making gains or losses in the U.K. market today. Stock symbols are in parentheses after the company names.

BT (BT/A LN), Britain's biggest phone company, added 2 pence, or 1 percent, to 206 pence. The company, which last month agreed to buy Infonet Services Corp. for $965 million, said the proposed purchase won approval from U.S. antitrust authorities, adding the transaction should be completed in the first half of next year.

Densitron Technologies Plc (DSN LN), a U.K. maker of liquid- crystal displays and electronic parts, rose 1.25 pence, or 8.9 percent, to 15.25 pence, its biggest one-day gain since Sept. 1. The company said shareholders would receive a ``significant return of cash'' under plans to sell parts of the company.

Enterprise Inns (ETI LN), Britain's biggest pub owner, gained 14.5 pence, or 1.9 percent, to 769.5 pence. Simon Johnson, an analyst at UBS, raised the company's share-price target to 880 pence from 800 pence.

Jarvis Plc (JRVS LN), the U.K. engineer whose debt is more than 10 times its market value, leapt 2 pence, or 15 percent, to 15 pence after the company sold a highways business for 35.3 million euros to help reduce borrowings.

Jarvis sold the European Roads unit to Somaro, part of French construction company Bouygues SA, it said after markets closed yesterday.

Holidaybreak Plc (HBR LN), a seller of Eurocamp and Keycamp vacations, slid 1 pence, or 0.2 percent, to 614 pence. The company agreed to buy Djoser BV, a Dutch provider of adventure holidays to destinations including Alaska, for 22.75 million euros ($30.6 million).

The acquisition of closely held Djoser is the second of a Dutch company in as many days for Holidaybreak, which yesterday said it was buying Business Reservation Centre Holland Holding BV, an online provider of accommodation, for 33.5 million euros.

Maghreb Minerals Plc (MMS LN), which is exploring for lead and zinc in Tunesia, rose 2 pence, or 13 percent, to 17 pence as its shares started trading on London Alternative Investment Market. The company sold about 2.6 million pounds ($4.9 million) of stock.

MMO2 Plc (OOM LN), the U.K.'s fourth-biggest mobile-phone company, rose 1.75 pence, or 1.4 percent, to 123.25 pence. Operators including MMO2 and Vodafone Group Plc held ``constructive discussions'' with German regulators and financial authorities over billions of euros in taxes they paid for high- speed mobile-phone permits, daily Handelsblatt reported, citing unidentified people in the industry.

The companies will probably not take legal action against the German government in return for an extension of a deadline by which they must make claims for tax rebates, Handelsblatt said, citing unidentified people in the industry.

Vodafone (VOD LN), the world's biggest mobile-phone operator, rose 0.25 pence, or 0.2 percent, to 140.12 pence.

Springhealth Leisure Plc (SGL LN), which owns health and fitness clubs, jumped 4 pence, or 23 percent, to 21.5 pence. Thistledown Developments Ltd., a company owned by Springhealth Chairman Sandy Anderson, agreed to buy the company for 3.35 million pounds, or 22.75 pence per share.

Trans-Siberian Gold Ltd. (TSG LN), which is exploring for precious metals in Russia, fell 42.5 pence, or 29 percent, to 105 pence, their biggest ever one-day loss. The company, which started trading in November 2003, said development of its Asacha gold mining project in the far east of Russia will cost more and take more time than previously planned.

To contact the reporter on this story: Bryce Elder in London at belder@bloomberg.net.

Last Updated: December 23, 2004 07:57 EST

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