Firm makes approach for Mouchel

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Building firm Costain has confirmed an all-share approach for Mouchel

Building firm Costain has revealed itself as one of the suitors circling outsourcing firm Mouchel as it confirmed an all-share approach for the embattled group.

Costain said it had put forward the proposal on December 2, just days before Mouchel said it had received unsolicited approaches in the wake of heavy share price falls, which it believed did not “reflect the true value of the company”.

The potential offer from Maidenhead-based Costain would value each Mouchel share at around 105.8p, equivalent to £118 million.

Costain’s bid interest comes after Mouchel’s shares hit an all-time low of 56.5p in early December from a year high of 268p amid concerns over the impact of Government spending cuts and as the group holds talks over the refinancing of its debt pile.

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