STOCKS NEWS EUROPE-Enterprise Inns up on dividend, debt hopes

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13:42GMT 13Nov2008-Enterprise Inns rises on dividend, debt hopes

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Shares in Enterprise Inns (ETI.L) gain about 10 percent as Dresdner Kleinwort says it expects Britain's second biggest pub operator to increase its dividend when it reports final results next Tuesday, helping to allay fears over its debt levels.

"A solid dividend payout should underline management's confidence in the model and capital structure despite the 1 billion pounds ($1.49 billion) 2011 re-financing," says Dresdner Kleinwort analyst Tim Ramskill who has a 'buy' recommendation and 320 pence target price on the stock which is 9.8 percent higher at 92.75 pence, having earlier been as high as 97.25 pence.

Ramskill sees Enterprise, which is carrying net debt of 3.8 billion pounds, as a key beneficiary of last week's interest rate cut and subsequent decline in the LIBOR rate.

Reuters Messaging rm://matthew.scuffham@reuters.com.net