Blackstone contemplating abandoning pursuit of Big Yellow - report

(Sharecast News) - Shares in Big Yellow Group tumbled on Monday following a report that Blackstone is seriously contemplating abandoning its interest in a multibillion-pound takeover bid for the self-storage firm. According to Sky News, citing City sources, Blackstone has yet to make a final decision about a Big Yellow offer ahead of an 8 December deadline imposed by the Takeover Panel.

Sky said Blackstone was understood to have been working on its interest with the Canada Pension Plan Investment Board (CPPIB).

However, the self-storage company's key executives are said to be keen to extract an offer worth at least £14-a-share.

Big Yellow shares were trading at roughly £11.54, giving the company a market capitalisation of approximately £2.3bn.

Sky said analysts and investors had concluded that last week's Budget statement from the chancellor, Rachel Reeves, had paved the way for Blackstone to firm up its interest and lodge a formal bid - an outcome which could still materialise, subject to further discussions.

However, a withdrawal is now said to be the likeliest outcome, according to insiders.

Big Yellow shares closed down 6.4% at 1,086p.