Consultant says 拢150m Costain bid 鈥檚ignificantly undervalues the business鈥�

Mouchel have rejected a second offer by Costain made this morning which valued the company at around 拢150m.

Costain upped their offer from a previous bid of 拢119m made at the beginning of December, but Mouchel鈥檚 board announced this afternoon that it rejected the increased proposal.

In a statement to the City, the consultant said: 鈥淭he board of Mouchel confirms that, following consultation with its advisers, it has rejected Costain鈥檚 indicative conditional proposal on the basis that it significantly undervalues the business.鈥�

The bid had valued each Mouchel share at 135p.

In a statement, Costain said it was 鈥渟urprised鈥� by Mouchel鈥檚 rejection of its offer.

鈥淭his decision by the Board of Mouchel denies its shareholders the opportunity to have a major stake in a well capitalised, financially efficient, enlarged business, with a clear strategy for future profitable growth,鈥� it stated.

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