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Biffa Accepts $2.3 Billion Bid, Rival in Wings

British waste collection company Biffa said on Friday it had agreed to a takeover offer worth 1.2 billion pounds ($2.34 billion) from a consortium of private equity companies but might
yet get a higher offer.

Biffa said in a statement a third party was conducting due diligence and might improve on the 350 pence per share it had accepted from Montagu Funds, Global Infrastructure Partners and UCIL. Biffa shares closed at 328 pence on Thursday.

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 non-executive chairman Bob Davies said the buyers' "investment plans will help Biffa maximize the opportunities presented by changing legislation to deliver growth into the medium term".

On Nov. 23, private equity firms Montagu and HgCapital said they had approached Biffa on Sept. 4 about a possible cash offer for the company but were rejected. On Nov. 26, Biffa said the proposal was at 330 pence per share.

On Jan. 24, Biffa said HgCapital had withdrawn its interest.

The third party approached Biffa after that announcement.