Shares digital

Close Brothers (CBG) 626p

Investment banking group Close Brothers confirms that it has pulled the plug on talks with potential bidders. (Read the full story: www.sharesmagazine.com/node/3471)

Shares says: Management is now focussed on growth, including making acquisitions. But Monday’s interims revealed the inevitable impact of the credit crunch on activity. HOLD

FT says: Analysts said the yawning gap between Close’s share price and Cenkos’s putative bid put Colin Keogh, the chief executive, under intense pressure to come up with a plan B.

Telegraph says: Close Brothers crumbled 91p to 659p after takeover talks collapsed. In November, Close Brothers rejected a 950p-a-share bid proposal from Cenkos Securities.

The City says: The future looks to rely on better allocation of capital to capture growth but includes a greater focus on acquisitions, which may further limit the potential return of capital to shareholders.