UK's biggest care home rises on bid speculation

The UK’s biggest care home operator responded to takeover speculation today by revealing it had received “general enquiries” from a number of parties.

Darlington-based Southern Cross Healthcare, which issued a profits warning last week, did not specify the nature of the interest and stressed it had not received a takeover offer for the company.

However, Southern Cross shares kept hold of the 25% gain seen earlier in the day, which followed a report in the Financial Times indicating possible bid interest from buy-out groups such as Blackstone, Apax Partners and Cinven.

Southern Cross lost three-quarters of its market value last week after it warned of lower than expected occupancy rates and it delayed repaying a £46m (€57.8m) bank loan.

It said today: “The company confirms that, whilst it has received general enquiries from a number of parties regarding the company’s current situation, it has received no approach relating to an offer for the company, nor is the board seeking to procure any such offer.”