Erinaceous Sale Talks Off

Erinaceous, the Aim-listed property services firm, has ended talks with potential bidders The light of recent global credit markets.

The company said yesterday: "Management explored the options with a number of interested parties but today concluded, particularly in the light of recent global credit markets, that the interests of the shareholders and the company are best served by terminating the discussions. None of the discussions progressed to the point of due diligence."

In the absence of a bid, Erinaceous plans to grow through cost cutting, cross-selling and acquisitions, despite past difficulty merging with other firms and defections from its insurance arm.

Erinaceous has faced several legal challenges concerning alleged overvaluation of properties. Earlier this year, the company settled out of court with Nationwide after the building society launched a £25m claim last October. A similar case being brought by Cheshire Building Society is still outstanding.