Contractor bumps up offer by 拢30m in attempt to win over Mouchel shareholders
Costain has increased its takeover for troubled consultant Mouchel to around 拢150m after being rebuffed at the beginning of December.
In a statement to the City this morning it made an all-share offer to Mouchel valueing its shares at 135p each.
On December 2 Costain offered 105.8p per share, around 拢119m for the whole company, but wahttp://be-cms.mfuk.com/CMS/storyEdit.aspx#s rejected by the Mouchel board who said the offer 鈥渟ignificantly undervalued鈥� the company.
Mouchel鈥檚 share price dived at the beginning of December after it announced it was looking to dispose of parts of its business.
Analysts believe that other bidders could emerge with Mouchel鈥檚 share price so low, with names in the frame including Carillion, CH2M Hill and Capita.
Costain also issued a pre-close management statement saying that its order book has shrunk to 拢2.4bn from 拢2.6bn at the same time period a year ago.
It said it had secured around 拢800m of work for 2011 and had a 鈥渟trong cash position in excess of 拢100 million and no significant borrowings鈥�.
Chief executive Andrew Wylie said: 鈥淲hile economic conditions are expected to remain challenging, we continue to benefit from our strategy of focusing on major customers in chosen sectors whose major spending plans are underpinned by strategic national needs, regulatory commitments or essential maintenance requirements, as evidenced by the strength of our order book and the type of contracts that we are winning.鈥�
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