RPS Group PLC (LON:RPS) shares advanced on Friday following a newspaper report that it has been in talks with Charterhouse Capital Partners about a potential takeover offer for the environmental services firm.
According to the Financial Times, the two companies have held preliminary discussions about a possible deal. However, a spokesperson for RPS told the newspaper that it had not been approached by the buyout firm or any other bidder.
The news comes in the wake of an October profit warning from RPS, which sent its shares tumbling. In the year to date, shares have fallen about 49%.
RPS, which deals in oil and gas and renewables, said 2018 pre-tax profit would likely come in below last year’s levels and miss market expectations. It added that it also expected 2018 fee income to be marginally below market expectations.
Following the FT report, Peel Hunt maintained a ‘hold’ rating on the stock with a target price of 157p.
Shares rose 1.01% to 139.8p in morning trading.