Offer is raised to £170m and is first to include cash

Costain has made a third bid for embattled consultant Mouchel, raising its offer from about £150m to £170m.

For the first time Costain has thrown a cash offer at Mouchel’s shareholders, offering about half a Costain share and 30p for each Mouchel share.

The offer now values Mouchel shares at 153.2p, and offers a “mix and match” option for shareholders.

On 6 January, Costain made a £150m all-share bid for Mouchel after being rebuffed over a £120m offer at the beginning of December.

The higher price, and the injection of cash into the bid, will further ratchet up pressure on the Mouchel board from shareholders to accept the deal.