Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Mouchel rejects Costain's second takeover bid

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.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Please note comments made online may also be published in the print edition of New Civil Engineer. Links may be included in your comments but HTML is not permitted.