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LONDON, March 30 (Reuters) - British bus maker Mayflower Corporation believes talks with its lenders are likely to fail, it said on Tuesday a day after it revealed book-keeping errors and the departure of senior managers.
"The board is currently reviewing all options available to the company and a further announcement will be made in due course," Mayflower said in a statement.
The UK's Financial Services Authority earlier said shares in Mayflower had been temporarily suspended from trading at the company's request.
The stock has plunged about 74 percent since a profit warning five weeks ago.
The company said on Monday it was willing to explore a possible bid from investment firm Melrose Plc .
But Melrose could not say on Monday at what price it might bid until it had examined the bus maker's books, and added any deal would be accompanied by raising new equity to cut Mayflower's debt.
Mayflower, which designs, engineers and makes bodies for cars, trucks and buses, said in a statement on Monday correcting accounting errors at its TransBus division would increase net debt, though probably by less than 20 million pounds. Mayflower's net debt was 176 million pounds at December 31.
The stock was up half a penny at 6-3/4p when it was suspended, valuing the firm at around 24 million pounds ($43.6 million). (Reporting by Victoria Cutler; email: [email protected], Reuters Messaging: [email protected], Tel: +44 20 7542 6884)) ($1=.5502 Pound)