£189m CH2M offer sparks bid war for Scott Wilson

Aaron Morby 13 years ago

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

Fatal accident at Laing O’Rourke Oxford site

Work suspended on site after tragedy
15 hours ago

Balfour renews £330m Lincolnshire highways deal

Firm will use its new operational control hub to promptly address network issues
16 hours ago

Three Caledonian Modular-built schools to be demolished

DfE confirms Essex, Somerset and Northampton schools will be bulldozed and rebuilt
17 hours ago

Gilbert-Ash takes £30m Tate Liverpool revamp

Work to start in the New Year on remodelling of iconic 1846 warehouse
16 hours ago

HS2 Solihull mass transit enabling works out to bid

Bidding for £60m main works to start early next year
17 hours ago

Modular health specialist Vanguard rescues M-AR

Deal with administrators sees Vanguard add production capacity with 100,00 sq ft offsite factory
17 hours ago

Torsion forms JV to build £90m Leeds resi tower

Construction to start in January on one of Leeds' tallest towers
17 hours ago

Approved change to concrete ‘recipe’ to slash carbon emissions

New approved concrete mixes will be able to blend finely ground limestone and fly ash
2 days ago

Network Rail unveils Cardiff South Central masterplan

Plans being drawn up for major housing-led mixed-use scheme
1 day ago

McLaren Living to revamp Watford police station site

Developer to submit plans for a major mixed-use development
2 days ago

National Grid £12.8bn HV civils framework hits market

Firms needed for major power line links and high voltage direct current converter stations
2 days ago

P.P O’Connor blows down four iconic cooling towers – video

Fiddlers Ferry Power Station regeneration gets off with a bang
2 days ago

Worker injured at £300m offshore wind factory site

Accident on major Teesside construction site
2 days ago

8Build bags Cambridge office and labs scheme

Firm wins phase 2 of The Press biotech development
2 days ago

Cash boost to accelerate Transpennine Route Upgrade work

Government commits £3.9bn for latest phase of rail upgrade
2 days ago

Further fines after fatal fall on office conversion

£600,000 CDM fine after death while installing lightning protection system
2 days ago

Lonsdale went down owing £65m to supply chain

More than 600 firms owed money as reduced credit rating sinks M&E giant
5 days ago

Wates only bidder for £80m Cardiff estate rebuild

Council contacted 20 framework firms but received only one bid for 295-home Channel View estate rebuild
5 days ago

£21m legal battle over flawed concrete at Salford flats job

Developer in compensation battle with Arcadis after new concrete core demolished
5 days ago

Abu Dhabi developer Aldar Properties buys London Square

UAE giant swoops on resi specialist in vote of confidence for London market
5 days ago

Hunt for delivery partner to revive New Hospital Programme

Programme delivery partner to get £600m fee to get plans back on track
6 days ago

Green light for new £780m Essex garden village

3,700 homes and four new schools to be built at Dunton Hills
5 days ago

Laing O’Rourke makes a £288m loss

Rampant inflation on fixed-price jobs and problem contracts blow hole in accounts
6 days ago

Keltbray, OCU and Clancy clinch £1bn electricity network upgrade

Scottish and Southern Electricity Networks awards biggest ever deals for central southern England
7 days ago

G&T enlisted for commercial review of HS2 main civils contracts

Phase 1 Main Works Civils Contracts to come under cost scrutiny
6 days ago

TClarke order books doubles to top £1bn for first time

M&E specialist on track to exceed £500m turnover this year
6 days ago

Wates signs Government safety remediation pact

Private builder belatedly signs fire safety developer remediation contract
6 days ago

Liverpool all-electric industrial park approved

McLaren and Caddick in chase for Sefton 800,000 sq ft Atlantic Park scheme
6 days ago

Former Buckingham Group MD to join John F Hunt

Simon Hyams is new Managing Director for Contracting
7 days ago

Three in race for retendered £150m A9 dualling job

Bidders take another look after client takes on more risk
7 days ago

Contractor services