FEW companies could be better positioned for sale to the investing public than Saga. The carefully nurtured business has a mailing list of just the sort of people who are likely to decide to put a little bit of cash into an attractive new flotation. When the subject of that flotation is a company with which they have done business, and probably have a continuing relationship, then the circumstances would seem better than most for an IPO.

So it should not be assumed that the private equity players who have submitted bids for the business can now simply wait for the one of them with the best price to carry off the prize. The company’s adviser, UBS, has been clear all along that the potential auction was being run alongside preparations for a possible IPO.

Roger De Haan, the son of the Saga founder, who is now selling the business, is understandably keen to get the best possible price. It may be that this could be achieved through an IPO rather than a sale. It might even be that the best price could be reached by launching an IPO in the hope that it might persuade one of the private equity bidders to hoist its offer significantly.

The hints that are seeping out do suggest that Mr De Haan has a very high price tag in mind. One of his pet projects is to turn the old quarter of Folkestone into a thriving artists’ community and anyone familiar with the area would know that he will need plenty of cash to achieve that level of transformation.

Roger De Haan is clearly eager to dispose of the company, but not that eager. Had a sale been accomplished at what had seemed to be the original timetable, it would have ensured that Mr De Haan’s brother collected a sizeable chunk of the proceeds too. The rather more leisurely disposal has meant that Roger De Haan is no longer forced to recompense his brother for having sold him his shares at a relatively modest price.

But Mr De Haan is not likely to want to delay the sale very much longer. Having seen the IPO of Admiral, the insurer, be given such a rapturous reception, his advisers are likely to be suggesting that any flotation should be launched while the appetite appears relatively strong. It was only a matter of weeks ago that Premier Foods and Virgin Mobile both had to cut back their price expectations fairly drastically as investors refused to be generous on valuations. The latest mood change may be only temporary, so there is little time to waste.

Saga has already tested the retail market for its shares, mailing customers and asking whether they would be interested in potentially holding the stock. The response was encouraging. The bullish prospects being suggested for the group in research compiled by the bankers would be likely to add to the enthusiasm for the stock.

Saga might also consider whether it could bolster retail demand for the shares with the sort of perks which appeal to private investors. There are plenty of private investors who do not regret the cash they sank into Eurotunnel, a dire stock from an investment point of view, because they have made the most of the free trips through the tunnel that were guaranteed to shareholders.

Saga customers could no doubt be turned into shareholders by the offer of a reduction on their holidays or a promise of even cheaper insurance.

'Hard though it may be to recall, it was only in March 2000 that Thus shares were trading at 844p'

THUS does the story end, not with a bang but with a whimper. With the share price at just 13p last night, Thus was looking as if its future as an independent company may be limited.

Hard though it may be to recall, it was only in March 2000 that Thus shares were trading at 844p. This was, of course, a reflection of the internet bubble that produced such crazy valuations. Thus had been spun out of ScottishPower, an attempt to create a fixed-line competitor to British Telecom. The prospect of companies using Thus to supply their internet needs powered the price to those heady levels.

But reality dawned. The stock had plunged back below 100p in early 2001 and it has not risen above that level since. The problem is that Thus is just another player in a market that is evolving far faster than the company had ever imagined it would.

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