VT Group has said it has decided to pull its offer for Mouchel as its directors have continually refused to engage with VT, the firm announced today.
This could potentially open the door for Babcock to continue its own pursuit of VT. Previously Babcock had said its offer for VT was conditional on it not taking over Mouchel.
Despite this VT said: “The board of VT continues to believe that an acquisition of Mouchel would create significant value for both Mouchel and VT shareholders.
“An acquisition would be firmly aligned with the successful strategy VT has pursued over the last five years of developing a broader based support services business, would result in cost synergies that naturally result from a combination of two businesses of the scale of VT and Mouchel and would be significantly earnings enhancing, and value creating, in the first full year of ownership on the basis of the terms of the Final Proposal.”
The statement continued: “The Board of VT hopes that, as and when circumstances change, the board of Mouchel would wish to enter discussions regarding a proposal that adds value for both sets of shareholders.”