Speculation continues over Wolseley after latest reports suggest that Cinven is not interested in a bid for Wolseley
Speculation surrounding the future of materials supplier Wolseley continued this afternoon with a report that no bid would be forthcoming for the company.
The Times said that private equity group Cinven, which this morning was linked to a £10bn bid for Wolseley, had no plans to proceed with an offer.
Cinven decided not to go forward with an offer which was suggested by an investment bank some weeks ago, the newspaper reported.
Wolseley’s shares shot up almost 7% today to 1424p after another newspaper, City AM, said Cinven was lining up a £10bn bid for the materials and plumbing supplier. Wosleley currently has a share value of around £9bn.
The newspaper speculated that Cinven would sell off the American arm of Wolseley’s business and focus on the highly profitable UK and European operations.
Wolseley is worth £8bn and any bid would be about 20% higher than this valuation reported City AM.