Shares in Erinaceous rose sharply yesterday following confirmation it has received takeover approaches – one of which is believed to be a proposed management buyout backed by 3i. Financial Times.
3i would not comment on any involvement in an MBO, which could value the company at about £375m.
The share price rose more than 18%, or 39.5p, to 252.75p yesterday, valuing the company at £271m. But the shares have not regained losses since the start of 2007 when the price was 346.5p.
The management believes that Erinaceous is undervalued. Neil Bellis, chief executive, and Lucy Cummings, chief operating officer, who between them control 17% of the company, spent almost £1m each on shares in the three days after the results were announced in March.