Costain has finally admitted defeat in its attempts to buy consultant Mouchel.
It has told the London Stock Exchange that it has “no intention” to make an offer for the consultant.
It confirmed that on 17 February, following the completion of comprehensive initial due diligence and extensive meetings with management, Costain’s board submitted a revised cash and shares bid that valued each Mouchel share at 164.26p.
This effectively matched its offer of 21 January which valued Mouchel at 153.2p per share plus the entitlement to any final dividend payable by Costain in respect of the year ended 31 December 2010.
Last week Mouchel confirmed it was rejecting bids from both Costain and Interserve.
Following the announcement Costain offered to carry out one week of further due diligence to reconfirm the terms of its revised proposal. This offer was rejected and, having considered its options, Costain has decided to withdraw its revised proposal and confirmed that it has no intention of making an offer for Mouchel.
It said its strategy of growing its consultancy business will now be “achieved by a combination of organic growth and suitable acquisitions”.