Waste disposal experts Biffa are still on the back foot in early afternoon trading as the market continues to digest the news that new bidders for the business are not putting in an offer after all.
On Friday the shares rallied as it emerged French utility Suez and Guy Hands's private equity company Terra Firma had been discussing the possibility of a joint bid for Biffa. The company had already accepted £1.2bn offer from a rival consortium of private equity firms, Montagu Funds and General Electric's Global Infrastructure Partners, and an HBOS subsidiary, UCIL.
Today Biffa told the market that the "third parties" who had expressed potential interest in making an offer had informed the company's board "they are no longer working towards making a competing offer for Biffa."
"As a consequence, the Biffa board is now not aware of any third parties who are working towards making such a competing offer," it added.
The shares are currently close to the day's low of 345p, trading at 345.5p, down 22.5p, or 6.1%. The offer from Montagu and its consortium partners is at 350p.
Elsewhere in the FTSE 250, another not-so-glamorous but relatively dependable company in focus is packaging group Bunzl.
Its shares are up 12.5p, or 1.9%, at 671.5p after its rising 2007 profits were in line with the market's expectations. Profit before tax rose 6% at constant exchange rates to £191.1m.
Chief executive Michael Roney says 2007 was marked by organic growth and a strong performance from Bunzl's acquisitions. And he is upbeat about the year ahead.
"We are excited about recent developments, especially the entry into the promising Brazilian market. The continued strengthening of the group gives us confidence that our business will continue to grow successfully," he said.
Still, Bunzl admits to a tough 2007 in North America, with slower economic growth and competitive pressures impacting its results. It also conceded some of its recent lower margin acquisitions there are taking longer to meet revenue expectations.
Finally, the FTSE 100 has failed to stick above the 6,000 mark, as Alliance & Leicester's gains have waned somewhat and miners have started to head lower as metal prices subside. The index is currently up 79.4 points, or 1.4%, at 5967.9.
