Montagu and Hg Capital, long term suitors of Biffa, face a last minute obstacle in the form of possible rival bidder Global Infrastructure Partners (GIP). The latter group, backed by General Electric and Credit Suisse, is beleived to have started due diligence on the waste business.
Biffa first rejected Montagu and Hg’s overtures last September but started to talking to the duo when they said they would lift their putative offer from 330p to 350p a share in December. In repsonse to the report that GIP was mounting a competitive bid, Montagu and Hg said they would complete rtheir own due diligence within a fortnight.
A 350p a share offer would value Biffa at £1.2bn (US$2.4bn). GIP bought London City Airport in 2006 and has investments in other utility and transport assets.
Citigroup and JP Morgan Cazenove are advising Biffa, whose shares defied the general stock market gloom to rise 12/75p, or 3.8%, to 344.5p.
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