Shares in the Tribal Group (LON:TRB) shot up 20% after the public sector focused consultancy confirmed that it has become a takeover target. The company said it received preliminary ‘expressions of interest’ which may or may not lead to an offer for the company.
Tribal’s statement would suggest that its not all doom-and-gloom for companies who have a dependency on the public sector spending, in the wake of the new government’s cut-back plans.
“Whilst short term trading conditions reflect the impact of the reduction in government spending on consultancy ... The company is very well-positioned to support public sector organisations as they undertake change and to participate in an expected acceleration of outsourcing opportunities that will contribute to the improvement in public sector efficiencies.”
The announcement followed speculation in the Financial Times that a private equity group may be preparing a potential 100p per share bid for Tribal.
On London’s AIM market, Tribal’s shares jumped nearly 25% to trade at 81p per share at lunchtime.
Tribal provides advice and services to a broad range of public sector groups – including the central and regional governments, as well as education, healthcare and housing agencies.
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