IWP shares drop 10% as takeover talks dashed

SHARES in IWP dived nearly 10% yesterday after the personal-care products group dashed hopes of a takeover approach and said it was in difficult talks with its banks.

The struggling company told the stock exchange it had noted recent takeover speculation and confirmed it had spoken to two potential investment groups in relation to a possible financial restructuring.

But there was bad news for shareholders when IWP also revealed the restructuring proposals were conditional on its banks agreeing to “a significant writedown of debt” and that this consent would not be forthcoming.