Two private equity companies have withdrawn their £1.5bn offer for Amec after the company refused to open up its accounts to scrutiny.
Texas Pacific Group and First Reserve Corporation approached Amec in November with a 450p per share offer.
However Amec rebuffed the offer saying it “significantly” undervalued the business. Texas Pacific and First Reserve have since said they would not be making a formal bid after they were refused access to the accounts.
The withdrawal will bolster the position of new chief executive Samir Brikho, who spelled out his vision for Amec in the run-up to Christmas.
Brikho announced that Amec would be selling its construction business, ending its 100-year history in the industry. The various parts of the division, which comprises building and civil engineering, PPP, facilities services and property development, will be sold off separately.
The new boss said the sale would help lift margins and set a target of 8% for 2010. Amec’s margin in 2005 stood at just 3.1%.
Brikho must hope that his strategy puts an end to increasingly frequent takeover approaches for Amec. Last year the support services group admitted it had received an approach from Australian rival Downer EDI.
It is also understood that the Financial Services Authority (FSA) is investigating trading in Amec’s shares prior to the approach from Texas Pacific and First Reserve.
The FSA refused to comment.