STOCKS NEWS EUROPE-ICG up on patent business sale report

Shares in Intermediate Capital Group (ICP) jump 8 percent, topping the FTSE 250 leader board, on talk private equity firm Cinven has agreed to buy patent business CPA from the mezzanine debt financing group for 950 million pounds, according to a source familiar with the situation.

Collins Stewart points out that CPA Global is ICP's largest equity investment and one of its largest mezzanine investments, and calculates that ICP's realised gain could be more than 200 million pounds, or 50 pence a share pre tax.

"The CPA transaction will benefit ICP in a number of ways: it will not only deliver capital gains but also reduce group debt and improve the returns in ICP's investment funds," the broker says in a note, repeating its "buy" rating on the stock.

"The CPA deal may be one of a number of processes which should make ICP's FY12 results to March 2012 impressive. Market expectations (including our forecasts) for FY12 need to be revised upwards," Collins Stewart adds.

ICP shares gained 2 percent on Tuesday after what Collins Stewart calls "a satisfactory" third-quarter interim management statement.

To see more on the story, please click on

Reuters messaging rm://jon.hopkins.thomsonreuters.com@reuters.net