Market Report: City glued to Pearson for news of television deal

Pearson, the media group, enjoyed an old-fashioned romp as the stock market positioned itself for an investment presentation, expected to offer intriguing morsels about the ambitions of its chief executive, American Marjorie Scardino.

The shares rose 25.5p to a 824p peak in brisk trading. In August they were down to a 12-month low of 664.5p.

The market hopes Mrs Scardino will be forthcoming on the pounds 232m bid for All American, the US television games show group which also embraces the Baywatch series, and the possible sale of the 4 per cent shareholding in Rupert Murdoch's BSkyB satellite television station.

All American will be Pearson's third TV deal; four years ago it acquired Thames TV and then Grundys, the Australian group.

Its TV build up would appear to make its BSkyB involvement surplus to requirements.

If Pearson is planning to untangled itself from the satellite broadcaster Mr Murdoch is doing Mrs Scardino no favours.

For the second time he has warned that BSkyB's near-term future is far from exciting. His latest comments left the shares a shade lower at 464.5p; they were almost 700p last year.

Pearson has its detractors - stockbroker Panmure Gordon is one - suggesting the shares should be sold.

The rest of the market had a roller-coaster session. Footsie lurched between a 40.5 points gain and a 14.9 deficit. It ended 5.6 higher at 5,305.6 with New York offering a little comfort.

Ladbroke had another canter, up 8p to 291.5p on US buying. P&O on hopes its cross-Channel Stena merger will be cleared by the regulatory authorities, rose 17.5p to 697.5p and British Aerospace climbed 40.5p to 1,792p on talk of continental deals as well as the perennial rumour of a General Electric Co bid.

BT, off 7p at 451.5p, was again busily traded as arbitrageurs struggled to square their positions. Shell, another heavily traded blue chip, rose 3p to 483p as analysts returned from a Far Eastern visit.

Allied Domecq, at one time up 21.5p, settled for an 8.5p gain at 493p. Its upcoming strategic review and talk about possible deals in the wake of the Grand Metropolitan/ Guinness merger helped sentiment. There was also a story it could be casting its eye over Greenalls, the hotels and pubs chain which has failed to live up to expectations. Greenalls, up 10p at one time, ended 4p higher at 376.5p in brisk trading. The shares were 633p last year.

Zeneca, 36.5p harder at 2,119p, was helped by expansion comments from Roche, the Swiss giant, and Cadbury Schweppes enjoyed talk of a share buy-back, up 10p at 610p. Suggestions of a share buy back also boosted Hillsdown Holdings, up 6p at 175.5p.

Ahead of visits by analysts and fund managers Great Universal Stores added 14.5p to 718.5p and Marks & Spencer on rumoured UBS caution fell 16.5p to 647.5p. Orange, the mobile telephone group, was helped by investment meetings, ringing a 5p gain to 235.5p. But paper maker Rexam folded 9.5p to 323p after analytical encounters.

Pillar, the property group, rose a further 7p to 268.5p following meetings with institutions.

Heavyweights, such as British Land and Land Securities, made further headway although there was talk one investment house was suggesting they were now fully priced and the second liners offered better value.

JKX Oil & Gas put on 3.5p to 59p as Ukrainian interests moved their stake to nearly 24 per cent. RJB Mining's growing problems left the shares in an even deeper hole, down 15p to 283p.

NSB Retail Systems, providing software for retailers, and SHL, an education group, made scintillating debuts. NSB went from a 115p placing to 147.5p and SHL from 245p to 268.5p.

Jarvis, the construction group, hardened 8p to 294.5p on talk of Railtrack orders; the privatised railway operator went to a 944p peak, up 25.5p, seemingly on property development hopes.

Tring International, a video group, firmed to 6.5p after takeover talks were called off.