Shanks shares in the limelight as it fixes up awareness day for investors

SHARES in the waste disposal group Shanks rose more than 10 per cent yesterday as dealers focused on an upcoming investor day on
5 October.

There was some speculation in the stock market that a potential bidder was looking at making an offer.

The US group Carlyle made an offer at 135p a share last December but it was rejected by the Shanks board which remains independent. The Shanks management team was said to have been holding out for a price of around 150p and the bid lapsed in March.

It is now possible for Carlyle to bid again if it wishes to. Sources played down the likelihood of a fresh bid, preferring to explain the excitement in the shares by the performance of the company.

“There are good signs that the management is delivering on its investment programme,” said a source who knows the group well.

Shanks was adversely affected by a cold winter in Europe which knocked sales but current trading appears to be going well. The group has said it is having a pre-close trading statement towards the end of the month.