Shares digital

Speculation that private equity giant 3i has decided not to proceed with a bid for healthcare group Nestor (NSR) has prompted the troubled company to issue a statement stressing it remains in discussions with a number of potential suitors. However, there are no certainties an offer will be made and the disappointment has led its shares to drop by around 20% to 47.5p.

Market sources have suggested that 3i was prepared to pay out £90 million, or 80p a share, for Nestor, and if it has now changed its mind, Nestor may find it difficult to find another buyer. It has been struggling since last November, when it issued a profits warning and said it had breached one of its banking covenants, causing the shares to lose half their value back then.

Trading since the start of the financial year is said to be in line with expectations, but there are fears that a full about-turn by 3i could see the shares plummet even further to levels around 30p.

Shares says: It's been a rollercoaster ride for Nestor and prospects continue to look uncertain.

by: Rachel Robson