Business
No intention to make an offer for Mouchel Group
No intention to make an offer for Mouchel Group.
About this update from Costain Group Plc
[{"type":"text","content":"\n \nRNS Number : 2632E Costain Group PLC 04 April 2011 \n \n\n \n \n \nCostain Group PLC\n(\"Costain\" or the \"Group\")\n \nNo intention to make an offer for Mouchel Group plc (\"Mouchel\")\n \nOn 17 February 2011, following the completion of comprehensive initial due diligence, including extensive meetings with management, the Board of Costain submitted a revised, fully deliverable, proposal to the Board of Mouchel comprising 22.25p in cash and 0.5531 new Costain shares for each Mouchel share which, based on Costain's share price of 256.75p as at the close of business on 1 April 2011 (being the last business day prior to this announcement), valued each Mouchel share at 164.26p. The Board of Costain believes that this revised proposal did not carry any significant execution risk.\n \nFollowing the announcement by Mouchel on 29 March 2011, the Board of Costain offered to undertake a one week period of further due diligence to reconfirm the terms of its revised proposal ahead of the remaining standard transaction implementation steps. This offer has been rejected and, having considered its options, the Board of Costain has therefore decided to withdraw its revised proposal and confirms that Costain has no intention of making an offer for Mouchel.\n \nThrough the Group's \"Choosing Costain\" strategy, Costain is making good progress in achieving its vision to be one of the UK's top solutions providers, with the scale and capability to meet successfully the increasingly complex and challenging needs of major customers. Costain's growth aspirations and ambition for the business will be achieved by a combination of organic growth and suitable acquisitions in line with strategy.\n \nFor the purposes of Rule 2.8 of the City Code, Costain reserves the right to announce an offer or possible offer or make or participate in an offer or possible offer for Mouchel (and/or take any other action which would otherwise be restricted under Rule 2.8 of the City Code) within the next six months following the date of this announcement:\n \n(i) with the agreement or recommendation of the Board of Mouchel; \n \n(ii) following the announcement by or on behalf of a third party of a firm intention to make an offer for Mouchel or following t...