OUTSOURCING and engineering firm Mouchel was today mulling an increased takeover offer from VT Group worth £330 million.
VT, formerly the shipbuilder Vosper Thornycroft, has upped its bid price after Mouchel "unanimously rejected" two takeover approaches at the end of 2009.
The Surrey-based firm is consulting with its major shareholders about the new offer, which values each Mouchel share at 294p based on VT’s closing share price on Friday. When the one month average for VT share price is used, the offer is valued at 305p, or £342 million.
VT offered the equivalent of 260p a share in December, but the stock reached 384p last year and Schroders, which holds a 12.4% stake in Mouchel, is reportedly said to be holding out for more than 300p a share.
The Times newspaper also said M&G, which owns just over 11%, believed the earlier 260p-a-share bid seriously undervalued the company.
Mouchel is seen as an attractive target for VT because of its strong presence in the local government sector, where it provides services such as waste disposal and road management. Budget cuts in local and central government are expected to result in greater outsourcing to the private sector.
VT is on the hunt for acquisitions after building up a war chest of £500 million, largely thanks to the £346 million sale of its 45% holding in BVT Surface Fleet naval shipbuilding to joint venture partner BAE Systems.
The move came as part of a planned exit from shipbuilding to focus on its services businesses, covering defence, communications and education and skills.
