IWG shares plummet as office giant abandons £2.7 billion takeover talks

Shares in the serviced offices firm fell by 63.2p (21%) to 237.4p after it announced to private equity firms Starwood, Terra Firma and TDR that it no longer intends to continue discussions regarding its potential £2.7 billion takeover. The move comes 12 weeks after talks were first opened, and just a day ahead of the deadline for formal offers. All three potential investors have confirmed that they have abandoned their bids.

When asked for comment on the situation, chief executive of IWG, Mark Dixon, explained that the board has been unable to see “eye to eye on any combination”. 

In an official statement, IWG said its board is “confident that IWG has an exciting future as an independent public company”.

Despite this positive outlook, the company’s pre-tax profits dropped 33% to £54.3 million in the six months leading up to the end of June, and some investors have warned that this situation could be an indication of an uncertain market in the UK as a consequence of the Brexit referendum and ongoing negotiations with the EU.

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