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Costain raises Mouchel takeover proposal | Costain raises Mouchel takeover proposal |
(1 day later) | |
Engineering group Costain says it has "significantly" increased its bid in a takeover proposal for outsourcing company Mouchel. | Engineering group Costain says it has "significantly" increased its bid in a takeover proposal for outsourcing company Mouchel. |
The move comes after Mouchel rejected an earlier approach last month. | The move comes after Mouchel rejected an earlier approach last month. |
Costain said its fresh approach valued Mouchel at £150m, 27.6% higher than the original bid proposal. | Costain said its fresh approach valued Mouchel at £150m, 27.6% higher than the original bid proposal. |
The deal would be "highly attractive" to shareholders of both companies, it said, but added there was still no certainty it would make a formal bid. | The deal would be "highly attractive" to shareholders of both companies, it said, but added there was still no certainty it would make a formal bid. |
However, Costain chairman David Allvey said his board continued to believe that there was "a compelling strategic rationale" for combining the firms. | However, Costain chairman David Allvey said his board continued to believe that there was "a compelling strategic rationale" for combining the firms. |
Government spending | Government spending |
Mouchel was founded in south Wales in 1897 by Frenchman Louis Mouchel. Today it has its headquarters in Woking. | Mouchel was founded in south Wales in 1897 by Frenchman Louis Mouchel. Today it has its headquarters in Woking. |
Prior to the initial bid approach, Mouchel's shares had slumped last year as a result of the UK government and local authorities cutting spending on the new infrastructure developments that the company provides. | Prior to the initial bid approach, Mouchel's shares had slumped last year as a result of the UK government and local authorities cutting spending on the new infrastructure developments that the company provides. |
Mouchel's current operations include half-ownership of Enterprise Mouchel, which has motorway maintanence contracts with the Highways Agency and grits roads on behalf of some local authorities. | |
Costain was established in Liverpool in 1865, but is now based in Maidenhead. It was involved in building the Channel Tunnel and the Thames Barrier. | Costain was established in Liverpool in 1865, but is now based in Maidenhead. It was involved in building the Channel Tunnel and the Thames Barrier. |
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