Consultaint Mouchel has rejected this morning’s offer by contractor Costain, its second bid that had priced the firm at about £150M, saying it “significantly undervalues the business.”
“The Board of Mouchel confirms that, following consultation with its advisers, it has rejected Costain’s indicative conditional proposal on the basis that it significantly undervalues the business,” it said in a statement.
Costain upped their previous offer of £119M made at the beginning of December, but following the rejection the contractor said it was “surprised” by Mouchel’s reaction.
“This decision by the Board of Mouchel denies its shareholders the opportunity to have a major stake in a well capitalised, financially efficient, enlarged business, with a clear strategy for future profitable growth,” it stated.
The interest comes after Mouchel’s shares hit an all-time low of 56.5p in early December - from a year high of 268p - amid concerns over government spending cuts and as it holds talks over the refinancing of its debt pile.