Carlyle mulling cash bid for Shanks

"Carlyle confirms that it is evaluating a possible cash offer for the entire issued and to be issued share capital of Shanks and has held preliminary discussions with the board of Shanks regarding its proposal," Carlyle said in a statement on Thursday.

Carlyle added there was no certainty it would make an offer for Shanks and that a further announcement would be made when appropriate.

Earlier this month Shanks said it had received a 536 million pound buyout approach but that its board and key shareholders were looking for at least 10 percent more.

Britain's Daily Telegraph newspaper on Wednesday reported that Shanks had denied Carlyle access to its accounts after the private equity firm refused to increase its offer for the group.

Shares in Shanks, which have risen 50 percent in the last month, largely due to bid speculation, closed at 130.90 pence on Wednesday, valuing the business at around 520 million pounds.

(Reporting by Rhys Jones; Editing by Matt Scuffham)