US firm in frame for Regus

Shares in Regus have lifted nearly 10% as Indigo Capital admitted it's interested in buying the firm.

Indigo says it's "interested in exploring a wide range of strategic, commercial and financing alternatives with the board of Regus .. (which) may include a recommended take-over".

The US group took its direct shareholding in Regus to 15.11% on Monday after refusing to rule out bidding for the business on Friday.

It has been making the running for the firm since the New Year and is thought to have also built up a stake through broker Cantor Fitzgerald.

Cantor Fitzgerald is believed to have been buying up shares on behalf of a number of third parties and holds a 13.18% stake in Regus, while its share are now at a six-month high.

A spokesman for Regus would only reiterate that "there have not been any formal discussions" between its directors and Indigo.

It is thought that Indigo covets the group's US arm, part of the Americas division, which has been under the greatest pressure of late.

Regus' value soared to £2bn (€3.08bn) in the tech boom as chief executive Mark Dixon sought to cash in on the growing demand for office space from new firms.

But figures out in November showed group operating losses for the three months to September 30 widened from £2.5m (€3.85m) to £13.1m (€20.2m).

Regus operates 419 centres in more than 240 cities in 52 countries and has in excess of 57,000 customers using its centres on a daily basis.