Assetco Share News (ASTO)

Cash-strapped outsourced fire services provider AssetCo has rejected an "opportunistic" approach from a third party interested in taking over the company.In response to press speculation the company confirmed that talks have been taking place with the third party on an intermittent basis for several months.The company established a committee of independent directors to oversee the negotiations. The committee has decided that recommending the indicated bid price, which is at a discount to the current market price, would not be in the interests of the company's shareholders. Bid talks have now been terminated, leaving the company to concentrate on sorting out its funding difficulties.The company announced it has entered into a short-term loan facility of £1.45m with its principle banker to meet certain critical payments that need to be made before it received the funds from its proposed £16m placing, announced on 3 March. News of the placing, which is due to be ratified at a general meeting on 21 March, has encouraged a queue of creditors anxious to get paid more quickly than usual. As a result the trade creditor balance at the end of March will be lower than on a normalised basis, although some key creditors will be required to remain on gradual repayment terms, the company said. In addition, the company will need to use some of the proceeds from the placing to reduce the level of recourse debt on the company's balance sheet. AssetCo is in negotiations concerning a suitable level of ongoing working capital facility.