Cambian surges as it confirms approach from rival CareTech

Social care services group Cambian shot higher on Tuesday after confirming that it has received a proposal from rival CareTech regarding a possible cash and share offer.

Following press speculation a day earlier, Cambian said in a statement that it had received a proposal regarding an offer valuing the shares at 220p each, with a full cash alternative at 200p per share, which may or may not result in an offer.

"The proposal is at a preliminary stage and there can be no certainty any offer will be made, nor as to the terms of any offer," it said, adding that a further announcement will be made in due course.

CareTech, which has until the end of play on 7 August to either announce a firm intention to make an offer or walk away, said the cash consideration would be funded through new debt facilities.

At 0922 BST, Cambian shares were up 33% to 196.78p.