TD Waterhouse customers quick to profit from A&L takeover talks

Angus Rigby, Chief Executive Officer, TD Waterhouse comments: "TD Waterhouse customers are bucking the bearish speculations of market commentators this week with buys representing 59% of all trades, while Alliance & Leicester accounts for 13% of this week's top ten sells.

"The bank featured in the buy-side of the tables a few weeks ago, and following Bank Santander's bid of 299 pence per share for A&L on Monday, customers seem to be reaping the benefits as A&L's share price leapt 53% to 335 pence per share. There is lingering uncertainty over A&L's balance sheet and the UK housing market generally, but some commentators suggest that this spike in value may mean that any potential buyer may need to go higher than the initial 299 pence per share bid initially offered.

"Randgold is once again popular with TD Waterhouse customers. The gold mining powerhouse's share price has more than doubled in the past 12 months as gold prices and inflation continue to rise. Chief Executive, Mark Bristow, warned investors on Monday that this escalation in price and adulation for the mining sector may be misplaced. Speaking at a conference in Johannesburg, Mr Bristow cautioned that the mining industry has not grown in production terms and that growth in the mining companies' market capitalisation is not reflected in a growth in profits. TD Waterhouse customers will keep a close eye on the development of this sector in the coming weeks.

"Aerial platform manufacturer, Tanfield, is the favourite sale for TD Waterhouse customers this week, but also finds footing in the buys chart. Speculation would point to Tanfield's appointing one of the ‘Big Four' accountancy firms to inspect its accounts and working capital assumptions as reason for this.

"Finally this week, RBS proves the top buy for our customers after it is announced that the bank will act as co-underwriter on the £1.57bn acquisition of Somerfield supermarkets, as well as the RBS/ABN Amro corporate finance arm acting as one of the Co-op's financial advisers."