好色先生TV

Support services firm VT Group has reiterated the case for its takeover of consultant Mouchel but said the firm had refused to enter talks over any deal.

In a trading update this morning, it said: 鈥淚n late 2009, we made two approaches to Mouchel with a view to acquiring the business. The board of VT believes that a combination would represent a strategically compelling proposition.

鈥淭he enlarged group would continue to have a strong focus on the public sector and its increased scale and enhanced capabilities would provide greater access to larger contract opportunities.鈥�

However, it added: 鈥淭o date, Mouchel has refused to enter into any form of discussions.鈥�

Any move by VT would follow its offer of 260p per share in December, which valued the company at 拢276m. Mouchel rebuffed that, allegedly seeking 300p.

Sources say that VT is waiting for news over whether Mouchel will stay within its 拢190m credit facility.

There has been no movement since December and several analysts this week described the proposed deal as having gone 鈥渦nusually quiet鈥�.

Mouchel's overall borrowing at the end of its financial year on 31 July 2009 was 拢180.7m, which left it with headroom of 拢9.3m.

However, at a trading update on 11 December the company said that borrowing at its half-year on 31 January would be above the figure, owing to weak trading in Dubai, where it has a joint venture with troubled developer Nakheel. In March it will come under further pressure when the facility falls to 拢180m.

According to two sources close to VT, which has an estimated war chest of 拢350m, the firm is hoping its bargaining position will strengthen if Mouchel comes under financial pressure.

One said: 鈥淰T is well aware of Mouchel's financial position and will make it sweat until it is ready to move.鈥�

In the trading update, VT pointed to its order book of 拢4bn and the fact it had been named preferred bidder by the Highways Agency on a four-year 拢25m maintenance contract.

The group's cash position was 拢25m at the end of 2009.