Shanks rejects 'undervalued' takeover figure

WASTE disposal group Shanks has walked away from takeover talks after rejecting an offer proposal valuing it at £475 million.

The long-running discussions with private equity firm Carlyle collapsed after the US company reduced its indicative price to 120p-a-share, from the 135p-a-share, or 535.6m, proposed in October.

The lower price comes a month after Shanks told shareholders that it expected full-year trading results to be slightly below its expectations. Shanks had earlier valued itself at 150p a share, or almost 600m. Shares in Shanks slumped 15 per cent to close at 102.2p following yesterday's news.

The Milton Keynes-based firm, which employs some 4,500 staff, has three key areas of work – recycling, converting waste into energy and PFI contracts.

It was formed in the late 1880s as a construction company based in the west of Scotland. Shanks also has offices in Lochgilphead in Argyll, Glasgow, Southampton, Pontypool and Rainham in Essex.