BUZZ-View from the buyside: Premier AM ups stake in potential break-up story Rentokil

** Premier AM's head UK equities Chris White has been adding to his position in Rentokil Initial (LSE: RTO.L - news) , a potential break-up story

** White says company would sell Hygiene & Workwear (H&W) division if an offer was made at the right price, leaving it to focus on Pest Control (44 pct of group operating profit, according to Investec (LSE: INVP.L - news) ) which has strong growth prospects

** In Pest, Rentokil market leader in most countries it operates in (47 of 66, Investec says); product innovations important for building brand, one example: cage traps for small pests which send out alert via SMS when set off

** M&A key to Rentokil's Pest growth plans, but White flags acquisitions in area, particularly big ones, pricey (Pest control very defensive & consequently cos valued highly by market (e.g. US co Rollins (NYSE: ROL - news) trades on c.35x next yr's earnings))

** Rentokil would need to get a good price for H&W so that any expensive pest acquisition is not too dilutive to profits & earnings, says White (RM (LSE: RM.L - news) : tricia.wright1.thomsonreuters.com@reuters.net)