Shares regained some lost ground this morning, rebounding sharply after an early drop, on bargain hunting.


The FTSE100 is currently up 26.5 points at 5,678.5 with FTSE250 up 66.6 points at 9,302.1. The FTSE Smallcaps is slightly lower at 3,409.


US stocks are expected to open slightly higher this afternoon, also helped by some bargain hunting after yesterday's hefty losses.


Today’s look at individual Stocks:


International Power topped the FTSE100 risers today. The stock was helped by sector consolidation in the American power market after US peer NRG Energy last night rejected an offer of $8 billion from Mirant. Credit Suisse noted to clients that the offer for NRG equates to around 8.5 times 2007 estimated EBITDA and values its generation portfolio at $552 per kW, well above International Power's Texas assets at $400 per kW. International Power shares have so far gained 10p at 285p. British Energy is also up 22p at 689p.


Staying with utilities today, Scottish & Southern Energy also gained 15p to 1,103p, after its energy supply business gained 600,000 new customers in 2005/6 and announcing a 19.2% rise in adjusted annual pre-tax profits to £858.2 million. The power provider also said it has no acquisition plans, but will continue to review market opportunities.


Friends Provident remained high, climbing 5.25p at 178.5p after an upbeat research note from Credit Suisse. The Swiss broker upgraded the insurer to outperform from underperform and lifted its target price to 218p from 172p, saying that the market is undervaluing the group's international 'offshore' life insurance business.



HMV Group has now finalised an agreed offer for specialist bookseller Ottakar's at 285p per share. This values the whole of Ottakar's at £62.8 million. HMV said it now owns or can acquire 41% of Ottakar's shares. HMV CEO (Alan Giles) said,

The strategic rationale for the acquisition of Ottakar's is now stronger than ever. A combined Waterstone's and Ottakar's business will create an exciting, quality bookseller', able to respond better to the increasingly competitive pressures of the retail market. The acquisition is a value enhancing opportunity to all stakeholders, and is expected to be earnings enhancing, pre exceptionals, from the first full year of acquisition and to exceed cost of capital by the end of the second full year

Tate & Lyle was upgrade this morning by Merrill Lynch who upgraded its recommendation to neutral from sell. The stock is currently 3.5p higher at 569p. However, the broker did warn that it thought the shares would continue to be affected by news flow surrounding its efforts to defend against potential competition.


One of the main news stories this morning came from the Corus Group who said its Q1 profit slipped due to weak demand and continuing cost pressures. However, the group said conditions had begun to stabilise and it was now able to start raising prices.
In the first quarter, Corus made pre-tax profit of £61 million compared to £198 million previously. Corus Group turnover in the quarter was £2.29 billion, down 2%, although total deliveries increased to 5.2 metric tonnes from 4.9 metric tonnes. Corus said average steel selling prices were 7% lower than 2005. Looking ahead, the group said global steel supply/demand balance remains tight, but improvement in European demand, has allowed it to increase selling prices by 5%-7% in the first quarter. Further price increases of 7%-12% have been pencilled in for the third quarter.

Corus remained silent about the merger mania that has recently swept through the steel industry. Corus shares soared Friday after steel company Arcelor agreed to merge with Russian market peer Severstal, effectively thwarting Mittal Steel Co's attempt to buy Arcelor and reviving talk that Mittal may target Corus.
A replay of the webcast of the 2006 Q1 Results can be found here: Q1 Webcast


Other mining stocks are as follows; Anglo American is down 33p at 2,083p, BHP Billiton is down 11.5p to 1,029.5p and Rio Tinto is also down 34p to 2,898p.


Shares in Northern Foods meanwhile, reacted positively to news it plans to radically refocus its business, including the sale of businesses accounting for 40% of its annual revenues. Proceeds from the disposals will be used to reduce borrowings, cut the company's pension deficit and invest for future growth. Northern Foods stock is currently 1p higher at 97.75p.


News:


Members of insurance firm Standard Life have backed plans for the company to float on the stock market with 98% voting in favour of the move. Subject to court approval, the company will float on the stock market and become owned by its shareholders.

Shares worth an estimated minimum of £500 will be offered to about 2.4 million investors and the company will raise an extra £1bn. More than 1.5 million members voted in favour of the change. The flotation (which is planned for July) will see investors receiving shares with an estimated average value of £1,700. If all goes to plan, it will be the fifth biggest insurance company on the UK stock market.


The Portfolio:


Wolfson (WLF) - The stock is currently up 4.65% at 444.50p