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Waste management group Biffa has quashed speculation a takeover is on the cards for the company.

Shares in the refuse firm had lifted by almost 25 per cent on Friday amid rumours of an approach.

But the value of Biffa's stock was down 8.2 per cent at 298.25p by 08:35 GMT today; with the company having confirmed it rebuffed a proposed offer from two private equity firms in September.

Biffa, spun off from water company Severn Trent last year, revealed it had received a takeover approach from a consortium consisting of private equity groups Montagu Private Equity and Hg Pooled Management (HgCapital) on September 4th.

Confirming its response to the approach, Biffa said: "After due consideration, the board rejected the proposal shortly thereafter.

"No further discussions have taken place since early September and no further proposal has been received by the board," the company added.

One analyst said news of the takeover approach was no surprise.

"This comes as no surprise to us since we have long held the view Biffa is a 'sitting duck' just waiting for an infrastructure investor to come along," Seymour Pierce analyst Kevin Lapwood said in a note quoted by the Reuters news agency.

Montagu and HgCapital themselves revealed Biffa had rejected their approach in a statement late on Friday.

But the two private equity groups indicated they were committed to pursuing an investment in the waste management firm, with their consortium currently holding a 2.4 per cent stake in the company.

Biffa is set to announce its half-year results on Wednesday.