Cash Bid for Shanks being considered by Carlyle

Carlyle Group

American private equity investor, the Carlyle Group, on Thursday confirmed that it is seriously considering a major cash bid for the only FTSE 250-listed waste management firm, Shanks.

The stock exchange announcement, however, is being looked at more as a formality than a sign of any substantial changes to the stand-off between the two firms.

On December 07, the speculation that Carlyle had approached Shanks with 135 pence per share offer reared its head, but no confirmations were made by any of the parties involved back then. The offer would value the currently issued share capital of Shanks at 536 Million Pounds, if it turns into a formal proposal.

The Board of Shanks, however, turned away from the unsolicited acquisition offer, stating that any proposal which values the firm below 150 pence or more is completely inappropriate, also sharing that the opinion is backed by two of its largest shareholders, Schroders Investment Management and Legal & General Investment Management.

"In response to recent press articles and the statement from Shanks on December 7 2009, Carlyle confirms that it is evaluating a possible cash offer for the entire issued and to be issued share capital of Shanks and has held preliminary discussions with the board of Shanks regarding its proposal", Carlyle announced, generating much media and market interest.

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