Avon takeover talks ended

SHARES in Avon Rubber plunged nearly 20% today as the rubber products group said takeover talks had ended.

The announcement comes three months after Avon revealed it had received a 'very preliminary expression of interest' which could have led to an offer, from an unnamed party.

The company's shares plunged 21 1/2 p to 96p on the news, wiping £6m from its value of the firm and pricing it at £27m.

Wiltshire-based Avon Rubber, which makes products as diverse as gas masks, golf grips, hosepipes and cow milking equipment, said it remained focused on delivering shareholder value.

It said it was confident its disposal programme and cost reduction measures would lead to a 'continued improvement in operating performance'.

In December the group announced plans to close its Trowbridge factory - which makes automotive hoses for a range of car manufacturers - putting up to 285 jobs at risk.