HSS Hire shares jumped today after a report suggested talks for a £300m merger with fellow tool and equipment hire group Speedy Hire had stalled.
Shares in the Heathrow-based HSS had jumped as much as 10.3 per cent at 57.35p per share this morning, and were up 8.65 per cent at 56.5p per share at the close.
HSS and Speedy Hire said merger talks were abandoned after a boardroom bust-up. Two Speedy Hire non-executive directors, Chris Masters and James Morley, left the board after voicing their opposition to the deal according to a report Sky News.
HSS floated back in February at 210p per share, however since then it's lost around 75 per cent of its value after a string of profit warnings and the exit of its chief executive.
The company said last month that, after the variability seen in July and August, trading conditions were more stable in September. The company added revenue growth expectations for this financial year remained in line with the previous guidance of eight to 11 per cent.
Shares in Speedy Hire have shed over half their value since the start of this year, after the tool hire specialist warned on a number of occasions that its full-year profits would miss expectations.
Speedy Hire shares ended the day 1.44 per cent higher at 35.25p per share.