Maiden's shares lose half their value as it fails to find a buyer

by Gordon MacMillan, Brand Republic 27-Feb-06, 11:00

LONDON - Shares in Maiden, the outdoor advertising firm, crashed by almost 50% this morning after it failed to attract a suitable offer.

Maiden effectively put itself up for sale towards the end of December, when it appointed investment bank NM Rothschild to assess the future strategic options for the company.

The bidders for Maiden were believed to include Viacom, Clear Channel and JCDecaux.

However, Maiden said this morning in a statement to the London Stock Exchange that the offers it had received valued the company well below its current share price.

By 11am, its shares had fallen to 49.61%, down 32p. Its shares have fallen steadily all morning and had dropped by 40.3% earlier this morning. Its shares closed on Friday at 64.5p.

In a statement, Maiden said: "The board said that is reviewing the options available to the company and discussions with its lenders are continuing."

Maiden, head by chief executive Ron Zeghibe, appointed NM Rothschild after posting an operating loss for the year on the back of disappointing sales and debts of £40m.

Last month, there was more bad news as it lost the First Great Western and First Capital Connect rail contracts to Viacom. This followed its withdrawal from the tender process for the Irish state-owned rail and bus operator CIE's ad contract after failing to agree terms.

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