STOCKS NEWS EUROPE-UK small caps close down 0.4 percent

The FTSE Small Caps Index closes down 0.4 percent, against a 1.1 percent drop for the blue-chip FTSE 100 (FTSE: ^FTSE - news) index and a 0.7 percent fall for the FTSE 250 (FTSE: ^FTMC - news) mid-cap index.

Trackm8 surges 43 percent after the designer and developer of GPRS based hardware and software for the vehicle placement and security market says it plans to acquire BOX Telematics, a fleet management systems company.

"Trakm8 is strengthening its telematics operations with the acquisition of BOX, a rival UK telematics operation," finnCap says in a note.

"This is both strategically significant (effectively doubling the scale of the business and making it a key player and consolidator in the fragmented UK market) as well as financially lucrative, being immediately earnings enhancing and cash-flow generative."

Green Dragon Gas adds 4 percent after the company involved in the production and sale of CBM gas in China says that it discovered that wells were drilled on 5 of its six PSC blocks pre-July 2013 by Chinese CBM gas companies and revenue and reserves from the wells will benefit Green Dragon.

Reuters messaging rm://atul.prakash.thomsonreuters.com@reuters.net