Carlyle bids for Shanks - have we timewarped back to 2006?

Private equity may be down but it's not out (it seems). News emerged before Christmas that Shanks, Europe's largest quoted waste management group, is in discussions with Carlyle.

Shanks was formed in the late 1880s as a construction company based in the west of Scotland. It employs 4,500 staff. It has three key areas of focus - recycling, converting waste into energy and Private Finance Initiative (PFI) contracts.

Carlyle confirmed that it had made an approach to the Milton Keynes-based group after Shanks posted a statement giving details of a 135 p-a-share offer on December 7. Rather unusually, Shanks said that it would be open to a 150p-a-share offer, which it added would offer "appropriate value to shareholders".

Shanks has said it is in discussions about the approach with its two largest shareholders, Legal & General and Schroders, which have said they favour the higher offer level.

Calyle followed up with a typically brief statement pre Xmas where it indicated that