Identity of mystery bidder is revealed as Carillion confirms that discussions are progressing.
Mowlem confirmed that it had received an approach from a potential bidder on 31 October.
Anaylsts speculated at the weekend that Carillion was the mystery bidder. They said that Carillion was attracted by Mowlem’s portfolio. They speculated that a bid for Mowlem was likely to be about 220p a share, giving the company a value of about £312m.
Mowlem last month announced a pre-tax loss of £73m for the six months to 30 June. Losses were concentrated in the construction division. The company has a pension deficit of £106m.