Waste management group Biffa is now sitting at 318p, up 22%, after confirmation of the takeover speculation reported here earlier.
As it turns out, it is not a European predator, but private equity groups Montagu and Hg Pooled Management. The duo said they had approached Biffa on September 4 about a possible cash offer at a premium to the then share price, but had been rejected. They added they were committed to pursuing an investment in Biffa and held a 2.4% stake in the company. Interestingly, the statement takes pains to spell out that it had letters of support for its proposed debt package from HSBC and HBOS, such is the nervousness around thanks to the credit crunch.
