Babcock says VT bid hinges on Mouchel deal being dropped

By Amy Wilson Published: 6:00AM GMT twenty-three February 2010

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Babcock International Group

VT Group

Mouchel Group

Babcock released the construction at the ask of the Takeover Panel.

The engineering services companys warn proclamation last week that it is posterior VT has pushed the targets bid for Mouchel in to disarray. Paul Lester, arch senior manager of VT, has pronounced the �330m suggest for Mouchel is "a sideshow" whilst the association addresses Babcocks approach.

VT needs to cling to glow and open up the books VT Group seeks Babcock takeover deadline VT underneath vigour to open books to Babcock Babcock staid to lift suggest for VT Group VT raises cost for Mouchel, rebuffs Babcock British firms close out of remunerative US deals

VT deserted Babcocks lifted suggest of in between 680p and 715p a share last week, that would worth VT at up to �1.3bn.

Mr Lester has called the suggest "unacceptable" and pronounced the house has the await of the infancy of shareholders for refusing to come in talks. Babcock says it wouldnt suggest some-more but saying VTs books, to consider the worth of the long-term contracts.

VT should hold out for an suggest of 775p a share, analysts at Numis pronounced yesterday. However Citigroup analysts pronounced it was heedful of Babcock charity some-more than 715p "in the deficiency of some-more synergies".

One tip 10 VT shareholder, Tim Steer of Artemis, has called on the association to open the books to show the turn of cost assets that could be accessible to Babcock.

Both companies are holding meetings with investors this week, whilst they wait for for the Takeover Panels preference on a "put up or close up" deadline.

VTs house will additionally encounter this week to plead the options in the bid battle, that embody a �230m payout to shareholders. The special division of 126p in money would come from VTs sale of the shipbuilding commercial operation to BAE Systems.