North deals soar as the national trend is defied

Oct 7 2009 By Karen Dent, The Journal

THE value of deals in the North East shot up by almost 500% quarter-on- quarter, bucking the national trend which fell by 26.6%.

The figures, produced by Corpfin - part of information group Experian - also showed the volume of deals in the region jumped by 39.3% compared to the previous quarter. Nationally, they dropped by 10.7% in the same period.

The value of deals in the North East hit £314.5m, according to Corpfin, but the analysis included the proposed £100m takeover of Newcastle United which has not yet gone ahead.

It was also pushed up by the £114m rights issue by Darlington-based vehicle hire giant Northgate.

Corpfin strategic consultant, Brian Rarity, said: "The North East has seen a huge increases in deal volumes of just under 40% and increases in deal value so high in percentage terms as to indicate that the previous quarter’s figure was seriously abnormally low.

"Given that deal volumes are not large in absolute terms in the large-, mid- or small-cap bands one must expect a large amount of deviation in statistical terms.

"Nevertheless the region has performed astoundingly well in the only terms that can be used to measure this quarter as against last."