Independent, The (London): SHARES AND MARKET REPORT: Dealers gamble on green light for betting

SHARES IN Hilton, which owns the Labroke betting chain, and William Hill were yesterday set alight by talk that the Government will soon give the green light to fixed odds betting terminals (FOBTs) in bookies. The speculation sent traders rushing to get their hands on William Hill, up 11.25p to 362.25p, and Hilton, 6.5p better to 203.75p.

At present, book makers and the casino industry are at loggerheads over FOBTs, which are a new and very profitable addition to the betting estate of William Hill and Labroke. Theses terminals allow punters to place immediate bets on races around the world, rather than simply those shown in the betting shop, as well as on a variety of games such as roulette. However, the gaming industry is not happy about with the presence of FOBTs in bookies, arguing that they are an attempt by bookmakers to introduce casino-style gaming to a bookmaking environment.

As it stands the dispute is in the courts and is likely to remain there well into next year, however, legislation from the Government would without doubt settle the issue. According to yesterday's market gossip a law on FOBTs may well be on its way from the Government, allowing the machines in bookmaking outlets but possibly limiting their number.

Elsewhere, Stanley Leisure ticked 3p higher to 350p after a ruling from the European Court of Justice which quashes Italy's ban on residents placing bets with bookmakers in other European Union countries. The case relates to a move by the Italian government some time ago to prosecute 138 people who managed local bet centres for Stanley Leisure. Italy argued that only those who have licences from the state should be allowed to take bets. The European court disagreed. According to Stanley Leisure, the practical effect of the judgment ought to be the opening up of the Italian market to cross- border sports betting, and will be good news for the company.

Meanwhile, the FTSE 100 index rose 20.8 points to 4,324.2 while the FTSE 250 put on 28.7 to 5,757.1. Cable & Wireless was held back by a downgrade from Credit Suisse First Boston. Shares in the telecom group dropped 2.5p to 129p as the Swiss broker cut its recommendation to "neutral" from "outperform" after the stock crossed its 125p price target. Although CSFB believes C&W shares could well motor higher should the telecom carrier negotiate a cheaper than expected exit from its loss-making US businesses, CSFB cautioned that things are not all rosy at the company.

The broker warned of downside risks to C&W shares arising from its Jamaican and Japanese businesses. "Currency weakness in Jamaica and increasing competition in Jamaica and Japan are likely to be highlighted in C&W's upcoming interim results," cautioned CSFB. It believes such factors are likely to hold back C&W shares in the near term. The group is expected to post first half figures next week.

SSL International rose 14.25p to 312.25p as takeover talk surrounded the condom and rubber gloves maker. Earlier this year SSL was on the receiving end of a bid from Reckitt Benckiser, the household products giant. However, talks between the two companies came to nothing. Market professionals believe that SSL is more exposed to a new bid approach after Wednesday's news that the Serious Fraud Office would not pursue the company over alleged accounting misstatements by former managers.

Bearish talk surrounded LogicaCMG, 1.75p lower at 302.25p. According to one rumour being spread by bears of the stock, the IT giant will soon have to issue a profit warning. Sector analysts, however, dismissed the talk outright. They noted that LogicaCMG's finance director, Seamus Keating, was making very positive noises at a conference in Cannes earlier this week. Mr Keating is quoted as saying that the integration of Logica and CMG, which merged last year, is on course to achieve the cost savings hoped for. LogicaCMG's finance director was also upbeat about the outlook at the IT services group. "We would expect good order intake in the second half of this year," he is reported as saying.

Sanctuary fell 0.75p to 49.25p as the music group announced plans to raise up to pounds 30m via the issue of convertible loan notes and warrants. Sanctuary also issued a trading update in which it assured investors that it would meet market expectations for the full year. The group is believe to be benefiting from strong trading across all its continuing divisions.

Antisoma fell 0.5p to 43.75p despite positive trial data from the biotech group's R1549 cancer drug. Evolution Beeson Gregory suggested that although the news is positive for the company, it will not have any meaningful impact on the group's financial performance. McBride ticked 2.5p higher to 112p in heavy trading as two directors declared the purchase of 125,000 shares at 111p.

International Greetings put on 4p to 260p on talk that business is going well at the wrapping paper and greetings cards group. James R Knowles gained 2.5p to 45p despite the sale of 75,000 shares at 42p by Michael Charlton, the group's joint chief executive.