Second bidder moves for Tribal

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The Independent Online

Public sector outsourcing group Tribal has received another takeover approach just a month after earlier talks collapsed.

Tribal said yesterday that "it has been approached regarding a possible offer for the company" before adding: "There is nocertainty that an offer will be made." The news sent the shares soaring 10 per cent to 46.5p.

The company first revealed it had received approaches in August. It gave no indication of the suitors' identity, but talk at the time was of private equity interest with a potential bid in the region of 100p per share.

However, the company's value halved in the wake of its news that talks had fallen apart at the beginning of November. It emerged shortly after that chief executive Peter Martin was to leave the group at the end of the year.

It has been a tough few months for Tribal, which works with local and national government departments, hospitals and schools, and it was forced to warn on profits in October. The news of tougherconditions, following a slowdown in consultancy contracts from the Government, wiped off a third of its value.