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Serco shares fall on reported collapse of bid talks

(Sharecast News) - Shares in Serco fell on Friday after a report that American Industrial Partners (AIP) contacted the UK government contractor about a potential bid for the company. The two sides are said to have engaged with one another, although it was unclear whether AIP had lodged a firm takeover proposal during their discussions, Sky News reported citing unnamed sources.

A person close to Serco insisted on Friday that there were no longer any active talks between them.

Serco, which has a market capitalisation of about £1.9bn, has a large number of UK government contracts, including processing asylum-seekers at two immigration centres in West Sussex and Bedfordshire.

Last year, it was awarded a contract to maintain and operate the UK's air defence radars for the next five years.

A Serco spokesman declined to comment, while AIP could not be reached for comment, Sky reported.

Reporting by Frank Prenesti for Sharecast.com

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Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

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