Carlyle quits Shanks takeover

TAKEOVER talks between buyout firm Carlyle Group and Shanks fell apart yesterday after a disagreement between the two over pricing.

Carlyle had looked poised to take over the waste management group but talks fell apart this week after it offered significantly less than Shanks originally wanted.

Carlyle made a final offer of 120p a share to buy out the business, marking a significant drop from the 150p price tag Shanks publicly gave itself.

Shanks price tag would have given the deal a total value of £600m if Carlyle had agreed to the price.

Shanks management said on Tuesday that it would not accept the offer from Carlyle, which would have only valued the company at £476m.

A statement from Carlyle said: “In response to Shanks’ announcement on 9 March, Carlyle has terminated all discussions with Shanks regarding a possible offer for the entire issued and to be issued share capital of Shanks and has no current intention of making an offer for Shanks.”

Shanks made its asking price public late last year in hopes of attracting rival bidders after Carlyle offered 135p, or £536m.

A spokesperson from Shanks said: “We ended the talks because Carlyle failed to come up with the right price and now we are getting on with our strategy.”

Shares in Shanks, which is listed on the FTSE 250 index, fell by 20 per cent on Tuesday after management announced it would walk away from the talks.



PHILIP Noblet led a team at Bank of America Merrill Lynch acting as financial advisers to Carlyle Group throughout deal negotiations with Shanks.

Noblet is currently co-head of Merrill Lynch’s Europe, Middle East and Africa (EMEA) financial sponsors group, which he was appointed to in 2008.

Noblet was deputy head of European merger and acquisitions at the bank when he advised the Guardian Media Group on the sale of its stake in Trader Media in 2007.

Noblet acted across the table from Greenhill & Co managing director James Lupton and principal Richard Hoyle.

Greenhill gave Shanks financial advice, including advising the waste management group to be forthcoming about its asking price.

Lupton has spent the last 12 years of his career at Greenhill, joining from Baring Brothers. During his time with Baring Brothers, Lupton served as deputy chairman and advised on a number of large M&A deals.

Meanwhile, Hoyle joined Greenhill from CSFB in 2000 where he advised in the European M&A division.