Private equity company HgCapital is to drop out of the battle for control of Biffa but private equity firm Montagu is still interested in pursuing a cash offer, said a Biffa spokesman.
The announcement follows recent news that Biffas shares rose by almost 3% in price after it had been approached by private equity group Global Infrastructure Partners (GIP) about a possible £1.5 billion shared offer with Montagu.
The spokesman told MRW: Montagu continues to be interested and has agreed to work with GIP instead of HgCapital, which has stepped away.
Montagu will now work with GIP to make a 350-pence-a share bid for Biffa. Biffas board would be prepared to recommend an offer by the potential offerors at this level if such an offer were to be made, the spokesman said.
Just before Christmas, HgCapital and Montagu were given access to Biffas books after the two bidders raised their proposal to 350 pence a share. HgCapital and Montagu initially offered 330p for Biffa last September but were rebuffed on the basis that it undervalued the business.
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