Hopes Energis rescue fade away

HOPES that Energis was on the verge of striking a lifesaving deal faded further today when the company told shareholders it had nothing to report on its negotiations with creditors and venture capitalists.

Chairman Gordon Owen told shareholders in Reading for an extraordinary general meeting of the troubled company: 'I had hopes that we would be able to announce before today conclusions of our discussions with banks, bondholders and potential investors. But this is not the case. Discussions continue and any announcements on this subject today will be misleading.'

A shortlist of potential bidders has dwindled from about 20 to just one, raising new fears that the telecoms company may go into administration. Speculation has raged for weeks that a deal is 'just days away'. Shares in the once-£14bn group today fell 0.2p to 1.25p, valuing it at less than £24m.

Several shareholders today urged the board to pursue a debt-for-equity swap rather than sell the company to venture capitalists. This would give them at least a chance of retrieving some of their investment, while not allowing the venture capitalists to benefit from their loss.