'Put up or shut up' VT takeover latest
Hundreds of staff at VT Group face five more weeks of uncertainty about a takeover bid by Babcock International.
City watchdog The Takeover Panel told Babcock yesterday that it has to make a firm and final offer for VT by April 12.
Called a 'put up or shut up' order, if Babcock does not commit to a definitive offer by that date, it must give up its takeover plans for six months.
The VT board, led by Paul Lester, pictured, remains opposed to joining Babcock and VT together.
But company spokesman Phil Rood said: 'We've got to take into account the views of shareholders. Everything has its price, and were they to be attracted by an offer, we'd have to take account of that.
'We don't own the company. They own the company.
'Were they to decide an offer was sufficient, we'd be called on to discuss it further.'
Hampshire-based VT has been facing a takeover threat by larger rival Babcock since mid-February.
At stake could be hundreds of jobs in the region, because Babcock has said it would axe duplicate roles if the two organisations merged.
The share price of VT currently stands at around 670p per share.
To entice VT's roughly 4,500 shareholders to sell out, Babcock is offering between 680p and 715p for the shares.
Joe Brent, city analyst for Liberum, said: 'The way I think it'll play out is VT shareholders will be minded to accept an offer, but one higher than the current offer. I think Babcock will bid again at 750p per share.'
But the timing of the offer is problematic.
VT would have preferred an earlier date than April 12, because its own separate bid to buy rival Mouchel runs out on Monday March 8.
Mr Brent said: 'Babcock wants to own VT but it wants it without Mouchel.
'So there's a risk from Babcock's point of view that (between now and March 8) VT will make a final bid for Mouchel. It has to keep up the pressue and that means raising the price. I think we'll know more in the next six days.'
Michael Van Dulken, analyst with Accendo Markets, said: 'By going in for Mouchel, VT could really mess things up. Babcock could be sabotaged by what VT does.'
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Tuesday 22 May 2012
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