Vincent Tchenguiz’s Consensus Group has not made a bid for Erinaceous, the two companies confirmed.

Speculation had mounted that Consensus, which held talks with the beleagured property ‘one-stop-shop’ earlier this year regarding a takeover, was poised to make a bid for some or all of the company now that its value has fallen.

Erinaceous’s share price had been as high 389p, but has plummeted to as low as 38p in recent days on the back of half-year losses and news that it had breached its banking covenants.

In an announcement to the Stock Exchange this morning Erinaceous said: ‘The board notes that [Consensus] has confirmed that an approach to Erinaceous has not been made and that [Consensus] is not in the course of preparing such an approach.’

Consensus said as much in an announcement to the Stock Exchange yesterday, but added: ‘However, it is possible that CBG may, in the future, make an approach to Erinaceous.'

‘Discussions between CBG and Erinaceous are at a very early stage and CBG is considering all of the options available to it which may include an offer for Erinaceous.’

The City was not convinced by the announcements. Shares fell 22% to 43p yesterday, and dropped as low as 39p today.