UK's Dechra slumps after profit warning

(Reuters) -Dechra Pharmaceuticals expects profit for the year to be below its prior forecast, amid a volatile environment and ongoing de-stocking by its wholesalers, the British veterinary pharmaceuticals maker said on Monday.

Dechra, which is in talks with private equity group EQT for a possible 4.63 billion pounds ($5.84 billion) all-cash deal, fell 8.6% in early trade.

The impact from de-stocking in the United States had been longer than expected and had a material impact on the third quarter, the company said in a trading statement, but added that there were signs that it was re-bounding.

Dechra expects operating profit for the year ending June 30 to be below 186 million pounds.

Shares in British company have fallen almost 8% since EQT's proposal of 4,070 pence per share was made public on April 13.

EQT has until June 2 to make a firm offer.

Dechra's shares were trading at 3,348 pence as at 0730 GMT.

($1 = 0.7923 pounds)

(Reporting by Radhika Anilkumar in Bengaluru; Editing by Shailesh Kuber)