ISEQ buoyed by baked goods deal

The ISEQ index of Irish shares was in bullish form this afternoon following news that food group IWAS is to spend a whopping €449m on US baked goods company Otis Spunkmeyer Holdings.

IWAS shares instantly shot up by 80c making them €15.85 each by close today as the company announced the signing for the agreement officially acquiring the American specialty baked goods company.

Otis Spunkmeyer Holdings is being bought from private equity firm Code Hennessy & Simmons and the management team of Otis Spunkmeyer.

Based on a closing enterprise value of $561m (€449m), the consideration for the equity is circa $340m (€272m) with an additional payment to stock and option holders contingent on the achievement of agreed performance milestones, up to a maximum of $25m (€20m).

The acquisition is being funded by additional debt facilities.

Buoyed by the good news other companies reported a positive beginning to the week with all the financials experiencing increases in share prices. Bank of Ireland and IL&P were the best performers with a 25c and 19c boost to €15.85 and €19.64 respectively.

Bank of Ireland also announced promising figures with an 80% jump in lump sum investment business.

Bank of Ireland Life reported the increase in its lump sum investment sales to September 2006 adding that overall new business sales grew by 29% to €295.7m compared to the same period last year.

Pension sales saw a growth of 10% in regular premium business and 25% in single premium pensions.

Bank of Ireland Life said it expects a surge in pension sales by year-end following on from the self-assessment tax deadline at the end of October.

On the ISEQ AIB also climbed 8c to €21.55 while Anglo Irish Bank had a slower day inching up 7c to €13.85.