Babcock says decision to turn down offer of 507.6p a share is 'disappointing'
VT Group has rejected a surprise offer from contractor Babcock, in a move that will throw VT’s bid for Mouchel into further confusion.
In a statement released today Babcock confirmed it sent a letter to the board of VT on 3 February, setting out the proposed acquisition offer of 507.6p per share, which it said would create “a large and focused international engineering support services company”.
But VT, which has been in prolonged talks with consultant Mouchel about a possible takeover, declined to discuss the proposal with Babcock.
Babcock has branded the negative outcome “disappointing”, as it hoped to increased scale, skills and capabilities in its core markets of defence, nuclear and critical infrastructure.
Babcock has branded the negative outcome “disappointing”, as it hoped to increased scale, skills and capabilities
Last month Building reported that VT was waiting for Mouchel to show signs of financial weakness in order to strengthen its bargaining position after the consultant rejected an offer of 260p per share before Christmas.
On Friday VT upped its offer to 294p per share after Mouchel confirmed it won £405m worth of work from the Highways Agency.
Mouchel said its board is now considering the terms of the proposal and is consulting with the company's principal shareholders.