IWG plummets after talks end

OVER £500million was wiped off serviced offices group IWG after it scrapped takeover talks with a trio of suitors yesterday.

Shares in the FTSE 250 owner of Regus plunged 61½p to 238½p after it told private equity firms Starwood, Terra Firma and TDR that it would not continue talks.

IWG said it has “an exciting future as an independent public company”. Investments cut halfyear pre-tax profit by a third to £54.3million on 7.1 per cent higher revenue of £1.2billion.

CEO Mark Dixon said: “To fully participate in the market potential, we have made significant investments in infrastructure, growth-related resources and the development of our strategic corporate account activities.”