Biffa receives approach worth £1.5 billion

According to sources Biffa, one of the UK’s largest integrated waste management groups, has received a counter-approach worth approximately £1.5 billion from a fund backed by General Electric (GE).

Following the news, shares in Biffa rose 4%. Prior to Christmas, Biffa opened its books to a rival consortium backed by private equity firms Montagu and Hg Capital, which have made an indicative offer at 350p per share (approximately £1.23 billion). However, a solid offer has not yet been made.

The sources said that GE’s infrastructure fund, Global Infrastructure Partners, which is also backed by Swiss-based bank Credit Suisse is carrying out due diligence on Biffa.

Biffa and Global Infrastructure Partners declined to comment on the news.

In late 2006, Biffa was de-merged from Severn Trent providing Biffa with an initial market capitalisation of £932 million.

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