demerges Biffa
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WASTE MANAGEMENT company Biffa is to be `demerged" from its parent company Severn Trent and floated on the stock market.
Just days after denying speculation that it was planning to sell its waste arm (CM 30 March), Severn's chief executive, Colin Matthews, revealed that it was to undo a diversification deal dating back to 1991. This will create two separately listed companies, Severn Trent Plc and Biffa Plc."
Biffa is expected to be in the FTSE 250. A trading update for Biffa, released at the same time as the demerger announcement, reveals that it expects lo see an 8% improvement in pre-tax profits for the first half of 2005/06. Full year profits should grow by up to 15%. christoplier.tilidall@rbi.co.uk