£189m CH2M offer sparks bid war for Scott Wilson

Aaron Morby 12 years ago
Share

Consultant CH2M Hill has trumped the rival bid from URS for Scott Wilson by £28m.

An intense bidding war erupted yesterday between the two heavyweight US consultants as CH2M Hill also revealed it had obtained commitments from shareholders giving it an 18.1% stake in Scott Wilson.

CH2M unveiled the £189m offer for Scott Wilson at 8pm yesterday evening after URS that morning made public a recommended offer of £161m for the UK consulting engineer.

The latest offer represents a 182% premium on the Scott Wilson share price when bid approaches were first declared on 4 June.

A source told the Enquirer: “Scott Wilson shareholders must be rubbing their hands. This latest bid is unlikely to be the final word in what is clearly a battle of wills between two heavyweights for control.”

Scott Wilson has given URS until July 1 to match the offer. URS, which has a matching rights agreement with Scott Wilson, said it was considering its options.

Lee McIntire, CH2M Hill’s chairman said: “While we would have preferred to make this offer on a recommended basis, due to the contractual arrangements that Scott Wilson has with another party, we are making this proposal directly to Scott Wilson’s shareholders.

“We will be seeking a recommendation to this offer from Scott Wilson’s board, and are confident that Scott Wilson’s shareholders will be supportive of what we believe to be a compelling offer.”

McIntire said CH2M Hill had a proven track record of supporting and developing the businesses it bought.

He added that the latest offer was superior to the URS bid both in terms of value and the opportunities it delivered to Scott Wilson, its business, customers and staff.

“We know Scott Wilson and respect the very capable people it has around the world. We believe that CH2M Hill’s model of employee ownership and our shared passion for customer service mean that our offer not only provides shareholders with compelling value but will also provide the business and its employees with the best environment in which to fulfil their full potential,” added McIntire.

The bidding war emerged after Scott Wilson reported full-year results, showing near-doubled, pre-tax profits of £18m, up from to £9.4m in the preceding year, despite revenue slipping to £340.4m from £360m.

Latest news

Landsec eyes £825m Glasgow Buchanan Galleries rebuild

Glasgow's mammoth shopping mall could be demolished for mixed-use city quarter
5 hours ago

Mace lands £300m London court and police complex

Main construction works to start on Fleet Street site this autumn
8 hours ago

Balfour Beatty names new investment arm chief

Leo Quinn promotes former major projects finance director Gavin Russell
8 hours ago

Spanish giant lands deal to build £683m waste power plant

New plant will turn black bin bag waste into electricity
9 hours ago

M1 fraud probe exposes contract management problems

M1 J13-16 investigation finds £320,000 of central barrier scrap metal went missing
15 hours ago

Beaumont Morgan Developments goes into administration

Begbies Traynor now in charge of £47m turnover Manchester contractor
15 hours ago

Green light for major overhaul of Surrey pharma campus

Kier and Mace bidding for revamp project with three storey glulam building at its heart
15 hours ago

Morgan Sindall hires Crossrail safety director

Carole Bardell-Wise joins infrastructure business as SHEQ Director.
15 hours ago

Galliford Try bags £28m Dover inland border control facility

Major inland border facility to be built alongside the A2 outside of Dover
14 hours ago

Plans go in for £280m Leeds Whitehall Riverside scheme

Major office and flats scheme to be built next to River Aire
14 hours ago

Roofer dies in six metre plunge through asbestos sheets

Court hears no safety nets were fitted on site
1 day ago

Subbies stop working for Beaumont Morgan Developments

Manchester based contractor was delivering Fortis Quay for associate development company
2 days ago

Gove threatens ban on cladding suppliers failing to pay for retrofits

Cladding and insulation suppliers now in firing line for cash for £9bn post-Grenfell remediation bill
2 days ago

Bill for £22bn HS2 extension to Manchester goes to Parliament

52-mile extension of HS2 to Manchester via Manchester Airport will support 17,500 construction jobs
2 days ago

Galliard scoops up trio of sites for schemes worth £265m

Sites in Redbridge, Ipswich and Milton Keynes to be developed
2 days ago

Plans in for 350-flat Salford student scheme

Developer X1 hopes to start 15-storey building later this year
2 days ago

Green light for Birmingham Paradise landmark hotel

17-storey hotel will be the 'cornerstone' of Phase 2
5 days ago

Structural steel price jumps another £50 a tonne

British Steel blames New Year's price hike on continuing high product costs
5 days ago

Enabling works start at £400m Manchester First Street

Downing to start main construction in March of three resi buildings rising up to 45 storeys
5 days ago

Former BAM Nuttall chief to join Murphy

Adrian Savory to start new role as director of Major Projects division next month
5 days ago

Bouygues set for London Tustin Estate 700-home rebuild

Phased building programme to start towards the end of the year
5 days ago

Safety horror show on housing site leads to director ban

Court hears contractor ignored multiple prohibition and improvement notices
5 days ago

JV North calls up local firms for £250m new home works

Framework for home building projects worth up to £2m
5 days ago

Kier more than halves debts to below £200m

Kier chief reports steady progress in first six months of trading
6 days ago

Barhale boosts funds as it looks to rebuild turnover

Contractor confident as water companies ramp-up spending plans
6 days ago

HS2 labour agency looks to float on AIM

£23m turnover labour supply business looks to raise funds for expansion
6 days ago

Kane scores £29m M&E deal with Willmott Dixon

Off site works to play crucial role in major London estate contract
6 days ago

Graham secures third Audley retirement village

Work starts on Audley Villages site at Scarcroft, West Yorkshire.
6 days ago

Keltbray wins first deal for former nmcn infrastructure arm

Hull waste processing contract for rescued division
6 days ago

50 firms win £750m decarbonisation framework

Fusion21 framework to target 'whole building' works on homes and schools
7 days ago

Contractor services