“We’ve had some preliminary discussions with Mouchel – initial discussions have taken place,” a Costain spokesman told Reuters.
A source close to talks told Reuters discussions between the two parties were ongoing and that some of Mouchel’s largest shareholders were keen to see a deal take place.
“It (a deal) has support but I think Mouchel and its shareholders are holding out for an extra 10 pence or so,” the source said.
Costain made a £175m offer for Mouchel last month after being rebuffed with two previous bids.
Mouchel declined to comment.