Bo Lerenius says Costain’s bid undervalues firm

The chair of engineering consultant and outsourcing firm Mouchel has said Costain’s £172m bid for the firm “undervalues” the company.

Bo Lerenius, chair of the firm, told the Telegraph: “We do not think the value is right, and this is the main thing for us. Look historically at where the company has been and the fundamentals have not really changed. I am not going into what we think the company is worth, but we do think it is worth more than what is on the table.”

Previously Mouchel has not indicated whether it rejects the offer, simply advising shareholders to take no action.

However, Lerenius did not rule out a sale, saying he would have to consider an offer if the price was right. He also confirmed the firm is considering more than one rival offer to Costain’s for the business.

Last week Mouchel completed a long-awaited re-financing and announced the sale of its Middle-Eastern business.