Just after posting how the market seems to like the chances of...

Just after posting how the market seems to like the chances of PCG being taken over, read this from Cape Plc's regulatory announcement that has been released to the London Exchange this morning (London time). Sounds like talks have broken down:

"Cape PLC ("Cape" or the "Company")

Re: PCH Group Limited

On 22 February 2007, Cape announced that it was in discussions with the Board of PCH which may or may not lead to Cape making an offer for all the shares in PCH.

Cape indicated a non-binding view of value at 90 cents per share (representing a 32% premium to the pre-announcement price) but following a period of high level due diligence, Cape has been unable to have any meaningful engagement or constructive dialogue with PCH or its advisers on a price which could lead to a
firm, recommended offer .

Cape remains willing to engage with PCH and its advisers if they wish to determine if a recommended offer can be agreed but this needs to happen in an open and cooperative manner, having regard to the respective interests of each company's shareholders.

Should there be material developments Cape will update the market.

Meanwhile, as previously advised on 22 March 2007, Cape is continuing to pursue other potential acquisition opportunities, namely:

* a mechanical and electrical business which would increase bundling capacity;

* a business with existing contracts in nuclear decommissioning; and

* a high-end cleaning business in order to consolidate the Group's investment in the DBI Group.

Although there are no current negotiations in respect of any of the alternative acquisition opportunities identified above and there is thus no certainty that any of these opportunities will be executed, the directors believe that each of the above acquisition opportunities would, if completed, strengthen the Group's product offering and would have the potential to add significant shareholder value in the next 12 months."







Sounds like the deal is off for the moment. Breaking news, i guess. Unless someone knows of an alternative bid being put forward, expect a big drop in share price at open tomorrow morning.