Mouchel fights hostile takeover bid

Grant Prior 13 years ago

Mouchel is facing a hostile takeover bid following a slump in its share price.

The consultant confirmed in a Stock Exchange update today that: “The significant fall in the group’s share price over the last few weeks has resulted in recent approaches to the company which would, if made, result in an offer being made for the company.

“As a result the company is in an offer period and a further announcement will be made in due course. The Board does not believe that these preliminary approaches reflect the true value of the company.”

Mouchel’s share price had fallen to 56.5p from a year high of 268p following financing fears at the firm.

This morning’s confirmation of a takeover approach saw a 34% jump in early trading as the share price hit a recent high of 75p as dealers reacted to the news.

The consultant is looking to sell non-core parts of the business as part of a corporate review which has seen Deloitte drafted in to reshape its structure.

The statement confirmed: “We have commenced preparatory work on the potential sale of non-core businesses and on a possible equity fundraising.

“We have also looked into alternative sources of funding and debt reduction. These are prudent measures to ensure that we maintain appropriate flexibility and maximise our long-term opportunities.”

Share traders have been selling the firm during ongoing talks over the refinancing of its £180m debt pile and fears over Government spending cuts.

Results in October revealed a pre-tax loss of £14.7m as bad debts in the Middle East and redundancy costs hit the business.

Mouchel has let 400 people go since July on top of 800 lay-offs in 2009/10, which has seen the number of employees drop to around 10,000.

The statement today added: “Mouchel’s immediate focus remains on managing our cost base, managing our cash well and helping our clients to maintain the highest possible levels of service to their customers and end-users.

“We expect the challenging market conditions of the last six months to continue for some time yet, but we also expect to see increasing long-term contract opportunities emerge in the first half of 2011.

“In the meantime, we continue to win new contracts and maintain great relationships with our clients.

“Our focused business strategy, established market position and our leading role in transforming essential services and sustaining vital infrastructure give us growing confidence in the medium and long-term prospects for the Group.”

Latest news

Approved change to concrete ‘recipe’ to slash carbon emissions

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

Network Rail unveils Cardiff South Central masterplan

Plans being drawn up for major housing-led mixed-use scheme
26 mins ago

National Grid £12.8bn HV civils framework hits market

Firms needed for major power line links and high voltage direct current converter stations
11 hours ago

McLaren Living to revamp Watford police station site

Developer to submit plans for a major mixed-use development
7 hours ago

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

Fiddlers Ferry Power Station regeneration gets off with a bang
12 hours ago

Worker injured at £300m offshore wind factory site

Accident on major Teesside construction site
12 hours ago

8Build bags Cambridge office and labs scheme

Firm wins phase 2 of The Press biotech development
11 hours ago

Cash boost to accelerate Transpennine Route Upgrade work

Government commits £3.9bn for latest phase of rail upgrade
11 hours ago

Further fines after fatal fall on office conversion

£600,000 CDM fine after death while installing lightning protection system
12 hours ago

Lonsdale went down owing £65m to supply chain

More than 600 firms owed money as reduced credit rating sinks M&E giant
4 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
3 days ago

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

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

Abu Dhabi developer Aldar Properties buys London Square

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

Hunt for delivery partner to revive New Hospital Programme

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

Green light for new £780m Essex garden village

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

Laing O’Rourke makes a £288m loss

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

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

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

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

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

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

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

Wates signs Government safety remediation pact

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

Liverpool all-electric industrial park approved

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

Former Buckingham Group MD to join John F Hunt

Simon Hyams is new Managing Director for Contracting
5 days ago

Three in race for retendered £150m A9 dualling job

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

Clancy tops £300m revenue in fifth year of growth

Civils contractor delivers £13.5m pre-tax from water and energy sector work
5 days ago

Tower crane collapses on Edinburgh resi site

Jib falls onto apartment block under construction: Video
6 days ago

Salboy drops office space from Viadux Phase Two

Developer to focus on Manchester residential towers of 76 and 23 storeys
6 days ago

Warwick Uni plan for science and engineering campus

370,000 sq ft science and engineering precinct submitted for planning
5 days ago

Morgan Sindall chalks up Greater Manchester schools treble

Bury, Stockport and Wythenshawe school jobs will create 1,600 pupil places
5 days ago

Plans in for £65m Blackpool multiversity campus

Council leads plan for Talbot Gateway learning campus
5 days ago

Laing O’Rourke wins first phase of £700m Oxford R&D district

Landmark Red Hall and two labs to be built in phase 1a of Oxford North scheme
1 week ago

Contractor services