Waste management and recycling specialist Accelerated Environmental Solutions (AES) has raised €6 million from shareholders to fund the company's further development.

AES announced yesterday that it had issued convertible loan notes valued at €6 million to shareholders.

The notes are repayable in five years and carry a 9 per cent a-year compound interest charge.

If a third party buys 10 per cent or more of the company, the notes can be converted to AES equity at a 20 per cent discount to the value placed on the shares by the purchase.

AES managing director Mr Pat Alley last night said that no-one had expressed an interest in buying any or all of the company. However, he conceded that it "was always a possibility".

There has been some speculation that it was about to be taken over.

The company itself bought eight other businesses in 2003 and completed a €15 million investment programme.

A statement yesterday said that AES would use the €6 million to strengthen its infrastructure.

AES has also hired Davy Stockbrokers to advise on a future strategy for the business.