UPDATE 1-UK's Advanced Medical Solutions tumbles after failed buyout talks
AMANASU ENVIRONMENT CORPORATION AMSU | 0.00 |
Adds shares, analyst comments, details and background throughout
May 18 (Reuters) - Shares in Advanced Medical Solutions AMSU.L fell as much as 24% on Monday, after private equity firm TA Associates confirmed it would not make an offer for the British medical supplier.
Here are some details:
TA Associates did not provide a reason for walking away from the deal
Advanced Medical Solutions, which develops and supplies wound‑care dressing technologies, said it remains confident in its standalone prospects and strategy
In April, the firm said it was in negotiations with TA Associates over a potential takeover
The company had attracted private equity interest in the past, including from Bridgepoint, according to media reports
Analysts at Panmure Liberum said the failed approaches raise questions about why firms are unwilling to follow through on a deal, whether due to pricing disagreements or broader concerns about the business
"It's not a good look, and inevitably, the market is going to worry about why PE don't want to pull the trigger on AMS" - Panmure Liberum
Shares were down 20.2% at 197.2 pence at 0801 GMT
Private equity interest in UK-listed companies is rising as firms look to capitalise on relatively low valuations
