CENTRICA has emerged as a possible bidder for drain cleaning business Dyno-Rod.

The British Gas owner is in talks with Dyno-Rod that could lead to a takeover of the business.

The news comes four days after a separate group of investors failed to complete a £60m deal with Dyno-Rod's 74-year-old owner, Jim Zockoll.

The latest interest is said to have come from Centrica as it attempts to build up its home services operation.

As well as British Gas, the company, based in Slough, Berkshire, has telecoms business One.Tel and a home care operation providing a range of domestic services, including plumbing. It is already one of Dyno-Rod's biggest customers.

Centrica, which is looking for acquisitions after selling breakdown service AA for £1.75bn earlier this summer, declined to comment.

The earlier proposed sale of Dyno-Rod collapsed on Friday when a management team said Mr Zockoll, a former Pan Am airline pilot, had decided not to go ahead with the deal, even though his terms had been met.

Stockbroker Seymour Pierce, managing the deal for the investors, said on Friday: "We are hugely disappointed that despite the enormous efforts of the management team and the advisors to meet the asking price, the vendor has decided not to proceed, even though his terms were met."

Mr Zockoll, a US citizen who owns 85 per cent of the company, has seen the business grow into a nationwide company since founding it as a plumbing company during his spare time in Wimbledon in 1963.

The Surbiton, south London-based company is now a 167-franchise operation, offering services ranging from emergency plumbing and locksmith services to pest control.

As well as domestic customers and British Gas, it provides services to a range of corporate clients, including housebuilders Barratt and Taylor Woodrow.

It had been due to float on London's Alternative Investment Market as part of the proposed sale to the group of investors.