Hot small caps: Phytopharm tumbles on Unilever withdrawal

Fri Nov 14, 2008 4:46pm GMT

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LONDON (Reuters) - Following is a round-up of key small cap movers on the London stock market on Friday.

3:41 p.m. -Phytopharm tumbles on Unilever withdrawal

Shares in plants-to-drugs company Phytopharm (PYM.L) plummet over 30 percent after the company announces that development partner Unilever UNLC.CI has pulled out of a deal to develop its Hoodia extract product.

Edison analyst Robin Davison says he believes that Hoodia and the Unilever deal represent about half the value of the company.

3:33 p.m. - Cookson up on chairman share purchase

Shares in Cookson Group (CKSN.L), the British industrial materials company, climb 10.4 percent as company says chairman Robert Beeston purchases 75,000 shares at 113.6 pence.

The news provides welcome relief after the company's shares have taken a hammering since Tuesday's warning that its 2008 performance would fall short of management expectations and end-market weakness would continue into next year.

Cookson's value has fallen over a third since Monday to 115.75 pence from 172 pence.

Credit headwind

News headlines speak of recovery, but financing is still a big problem in Germany. The dearth of credit to tide firms over is frustrating policymakers, who are blaming reluctant banks and there is little agreement on how best to increase lending flows. Full Article