Babcock mulls more job cuts as takeover looms
Babcock is looking for more jobs to be lost from Hampshire's VT Group.
A move to buy up VT is widely expected to be made this week, after prolonged and painful negotiations which have seen VT try to fend off the unwanted takeover.
Babcock initially predicted it could make 27m-worth of 'synergy savings' if the companies merged - financial jargon for axing overlapping jobs.
Now the company has spent the last couple of days combing through VT's accounts to find out if they can cut even more jobs.
Phil Rood, spokesman for the VT Group which employs hundreds of people in and around Portsmouth, said there had been a series of presentations given to Babcock in the last few days.
He said: '27m in synergies, and now they're confident they've identified other areas that can save money. That's the logical step as a result of those discussions.'
Babcock's current proposal is to buy the company for around 715p per share, but a final offer is expected this week.
Its spokeswoman refused to comment.
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Tuesday 22 May 2012
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