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.
