AssetCo ends takeover talks

AssetCo, the outsourced fire services provider, has ended talks with a potential bidder so it can focus on short term funding issues.The firm, which has contracts with the London Fire Brigade and their colleagues in Lincolnshire, has been struggling to restructure its non recourse asset financing and associated short-term debt. Talks are taking longer than expected, forcing the company to look elsewhere for short-term cash, about £4m, it reckons."Whilst the directors remain confident that the refinancing will be delivered before the financial year end, the delay has led to a significant strain on the cash resources of the business," the firm explains.It's in advanced discussions to arrange a short term debt facility of £3.5m and is looking to release further amounts from other facilities available to it. Bosses also expect to receive waivers from certain technical breaches of its banking conditions. "In light of the delays to the refinancing, the directors are now considering a number of other solutions to the capital requirements of the business including an equity fundraising," AssetCo said Monday. "Consequently the company announces that it has informed the potential offeror referred to in the announcement dated 31 January 2011 that it is discontinuing talks with it in order to concentrate on the company's short term issues." It still hopes to announce contracts in the Middle East and elsewhere "shortly".