Biffa accepts $2.3 billion bid, rival in wings

By Dan Lalor

Biffa said on Friday a third party was looking at its books and might improve on the 350 pence per share it had accepted from Montagu Funds, Global Infrastructure Partners and UCIL.

Seymour Pierce analyst Kevin Lapwood said the offer valued Biffa at 23.5 times his forecast for 2008 earnings per share.

On January 24, Biffa said it was prepared to recommend a 350 pence proposal from Montagu and Global Infrastructure Partners if the private equity companies made a firm offer at that price.

Biffa, which was demerged from British water company Severn Trent Plc in October 2006, said the third party had approached it after that January 24 announcement.

Montagu's Jason Gatenby said Biffa was "a market leading business with a great workforce in a sector we understand well and where we have a demonstrable track record of success."

Biffa has hired Tricorn for advice alongside Citi and JPMorgan Cazenove, who are both also advising the unnamed third party.

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