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Shares in bus manufacturer Optare perked up after it revealed that it was in talks with a possible bidder.
The shares rose 0.875p to 6.25p each, which values the company at £14.5m. In September 2009, Optare raised £8.6m at 7p a share. When Optare reversed into Darwen Holdings it had to cut the price shares were placed at from 40p to 30p. This placing raised £16m.
Optare had previously said that it hoped to secure a strategic partner. This could end up being achieved via a takeover bid but there is no certainty that there will be an offer.
Optare has been struggling in recent times and it is losing money. Short-time working is helping to keep down costs but breakeven is unlikely to be achieved before the second half of 2010.
Net debt is currently £8.2m but this should be reduced by the sale of the Rotherham factory.
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