28.05.2008

Bid rumours at Ashtead

Ashtead one of the world’s largest equipment rental companies and owner of Sunbelt in the USA and A-Plant in the UK saw an 11 percent jump in its share price yesterday on exceptionally high volume, following takeover rumours.

Analysts suggest that the sudden jump in the share price was driven by either the imminent sale of its Ashtead Technology business for around £100 million and/or a possible bid from CCMP Capital, formerly known as JP Morgan Partners at around 110p, compared to its starting price yesterday in the mid 60p level.

CCMP has recently sold its Safety-Kleen business and would see Ashtead as undervalued due to fears over construction spending, particularly residential construction in the USA.