Shares digital

Waste collection and recycling firm Biffa (BIFF) has agreed a £1.2 billion private equity deal takeover from Montagu and Global Infrastructure Partners, but a counterbid could be looming as Biffa confirms other interested parties are still looking at its books. The 350p-per-share offer has been expected for weeks, but the bid confirmation sent Biffa’s shares up to 367.25p as investors speculated over a second approach. Stockbroker Altium reckons a rival bid could hit 395p per share.

Shares says: The Montagu bid was only recommended as another bid hasn’t yet emerged. We believe Biffa’s board would easily be enticed by more money. Analysts point out high valuations paid for other waste management operators. Wait to see what happens. If no one else tries their luck and Montagu’s bid does complete, then 350p is still not a bad takeout price.