Bulmer's stock soars 8% on bid talk

Shares in hp Bulmer soared 8 per cent yesterday after it emerged that CVC Capital Partners, the private-equity group, was among possible bidders for the struggling cider maker.

The group, which hoisted the "for sale" sign last month, is the middle of a strategic review of its operations. It has held talks with several parties to sound out their likely interest in tabling a bid for the whole group and is also considering selling its drinks distribution arm, The Beer Seller.

A company spokesman said no decision had been made about which route to follow. "It's a bit premature to talk about a potential buyer," he added.

Bulmer's shares, which traded at 351p 12 months ago, rose 8p to 106.5p, valuing the company at just under £60m. CVC declined to comment.

The group, which ousted its top two directors last year after unearthing a £3.8m hole in its accounts, has come under fire for awarding its new chief executive, Miles Templeman, a generous payout in the event that the company finds a buyer. Mr Templeman, who picked up the reins at the maker of Strongbow and Scrumpy Jack at the beginning of January, will scoop £550,000 if the company is sold. Richard Pennycook, its recently appointed finance director, is believed to have been awarded a similar incentive.

Mr Templeman, the former head of Whitbread's brewing arm, used to work for CVC. Although he resigned in September, he sat on the advisory board at the European buyout company last year after teaming up with CVC in 2001 to lead an abortive bid for the soft drinks maker Britvic.

The cider maker is scaling back its overseas businesses to focus on its profitable UK operations after a series of disasters that have seen it issue six profit warnings in 12 months.

The group has already received an approach over a possible £30m management buyout of The Beer Seller from its commercial director, Jean-François Jamet. Scottish & Newcastle, the brewer, and Matthew Clarke, a wholesale business, are also understood to be interested in Bulmer's drinks distribution unit.