Shanks said it was unwilling to recommend an offer at such a level and accordingly further discussions with Carlyle, which first made an approach in October, were not in the interests of shareholders.

Chairman Adrian Auer said,'The board's response to the approach from Carlyle has always been about price.

'Although the timing of their approach was not of our choosing, we have engaged fully and professionally, but Carlyle has failed to offer a price which (in the view of the board) properly reflects the value of the group.

'Shanks is a well-managed group with good strategic positioning in the evolving European waste markets and the board is confident that the group can deliver attractive growth in shareholder value over the medium term.'

Shanks said it remained committed to a focused strategy around its three principal growth areas of recycling, organic processing and UK PFI.

While trading conditions for the waste industry across Europe remained challenging, it was very confident in the group's longer-term prospects.

Shanks remains in an offer period for the purposes of the Takeover Code.

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