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		</div><p><a href="http://londonglossy.com/wp-content/uploads/2011/01/costain-prepares-new-mouchel-bid.jpg"><img class="alignnone size-full" title="Construction firm Costain has revealed a new takeover bid for outsourcer Mouchel" src="http://londonglossy.com/wp-content/uploads/2011/01/min-costain-prepares-new-mouchel-bid.jpg" alt="Construction firm Costain has revealed a new takeover bid for outsourcer Mouchel"/></a></p>
<p>Construction firm Costain has upped the ante in its battle for outsourcer Mouchel as it revealed a third takeover proposal worth more than £170 million.</p>
<p>Costain&#8217;s higher approach &#8211; worth around 153.2p for each share &#8211; comes after Mouchel flatly rejected two previous moves over the past two months.</p>
<p>Friday&#8217;s all-share proposal marks a 45% hike on Costain&#8217;s first indicative offer, which valued Mouchel at around £118 million.</p>
<p>David Allvey, chairman of Maidenhead-based Costain, said he hoped it would &#8220;encourage Mouchel&#8217;s board to engage with us without delay&#8221;.</p>
<p>But the group&#8217;s plans could be scuppered as Mouchel is thought to be close to securing a refinancing that may help it fend off the unsolicited interest.</p>
<p>Costain&#8217;s pursuit comes after Mouchel shares hit an all-time low of 56.5p in early December &#8211; down from a year high of 268p &#8211; amid concerns over Government spending cuts and as it holds talks over the refinancing of its debt pile. Mouchel&#8217;s banks are said to be supportive of negotiations to extend borrowing terms for another three or four years.</p>
<p>The group has clients including Government agencies and councils across the UK, including Milton Keynes, Middlesbrough and Bath &#038; North East Somerset.</p>
<p>However, Costain believes its proposed bid would create a stronger combined group with the scale and might to meet demand from customers for larger and longer-term bundled services.</p>
<p>A deal between the two would also &#8220;address the likely continuing constraints on the strategic development and growth of Mouchel following a debt refinancing,&#8221; said Costain.</p>
<p>Costain is focused on the infrastructure, environment and energy sectors. It said in a trading update on Friday that it ended 2010 on track with forecasts and has a forward order book worth £2.4 billion.</p>
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