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Sweett has turned its back on a takeover deal with WSP Parsons Brinckerhoff in favour of a higher 拢29m offer from Middle East-owned Currie & Brown.

In a statement late on Friday Sweett鈥檚 board said it was now recommending the 拢29m bid from Currie & Brown, which trumps WSP PB鈥檚 拢24m bid from late May.

Currie & Brown had already acquired Sweett鈥檚 struggling Asia Pacific businesses in a deal agreed late last year and concluded earlier this month.

Sweett鈥檚 chairman John Dodds said the Currie & Brown offer represented an 鈥渁ttractive premium鈥� for shareholders.

Currie & Brown is also offering Sweett a 拢9.45m debt facility that would replace the firm鈥檚 current borrowing facilities, which expire on 8 July. Dodds warned Sweett鈥檚 bank had shown 鈥渦nwillingness鈥� to extend the facility, making Currie & Brown鈥檚 additional offer of debt funding more attractive.

Sweett鈥檚 directors will step down from Sweett鈥檚 board if Currie & Brown鈥檚 takeover bid is successful.

WSP PB responded this morning to say it was 鈥渃onsidering its options鈥� following the rival bid and advised Sweett shareholders to take no action. It was unclear whether WSP PB intended to up its offer at the time of publication.

The original deal between Sweett and WSP PB had been expected to complete this month.

Currie & Brown is a subsidiary of Middle East-based engineering giant the Dar Group, which also owns architect Perkins+Will.

Currie & Brown鈥檚 offer at 42 pence a share represents an 83% premium on the 23 pence closing price of Sweett鈥檚 shares on 24 May prior to WSP PB鈥檚 bid. The rival bid is also a 20% premium on the 35 pence per Sweett share from WSP PB.

Currie & Brown said it believes cost-savings can be made at Sweett, principally through the intended de-listing from the AIM stock exchange and cut-backs in property, back office and shared services. 

David Broomer, group chairman of Currie & Brown, said: 鈥淭his transaction will bring together two well-respected businesses to create a leading construction advisory business and deliver a key element of Currie & Brown鈥檚 strategy - to provide a quality offering to global and local clients alike.

鈥淭he acquisition of Sweett will create a business of substantial scale in the UK, which will provide a compelling offer to clients and significant opportunities for all our people to develop.鈥�

The offer from Currie & Brown follows its purchase of Sweett鈥檚 Asian and Indian businesses and the subsequent disagreement between the two over the price, which was only resolved after a decision from an independent arbitration earlier this month.

Sweett also posted a 拢19.4m loss for the year in its last set of results. The consultant lost 拢13.7m on the sale of its APAC and India businesses to Currie & Brown and reported 拢1.9m of operating losses in the Middle East, as well as a 拢5.1m pre-tax loss, which the firm attributed to exceptional administrative expenses.