Costain will not make any more offers to buy Mouchel after a fourth bid was rejected, a company statement has confirmed.
The revised offer comprised 22.5 pence in cash and 0.55 new Costain shares for each Mouchel share.
Based on Costain’s share pice of 256.75 pence – as at close of business on 1 April – the offer valued each Mouchel share at 164.26 pence.
In a statement to the stock market Costain said: “This offer has been rejected and, having considered its options, the board of Costain has therefore decided to withdraw its revised proposal and confirms that Costain has no intention of making an offer for Mouchel.”
The group will instead pursue its “choosing Costain” strategy to become a one stop shop provider and acquire other smaller firms and grow organically.
Under city rules the group could still make further offers under certain circumstances.