Saturday, June 26, 2010

Babcock and VT bosses meet to discuss takeover battle

By Amy Wilson and Helia Ebrahimi Published: 6:15AM GMT 04 Mar 2010

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Babcock International Group

VT Group

As suggested on Telegraph.co.uk yesterday, the companies" advisers are holding a array of meetings to try to mangle the deadlock over a satisfactory cost for VT. Negotiations stepped up yesterday when Paul Lester, arch senior manager of VT, and Peter Rogers, his reflection at Babcock, met face-to-face after weeks of antagonistic statements.

Insiders pronounced the discussions fell short of grave due industry given Babcock had not nonetheless been postulated full entrance to VT"s books.

Babcock and VT advisers encounter to mangle deadlock Takeover Panel sets deadline for Babcock bid for VT VT stands organisation in face of financier vigour over Babcock bid Babcock says VT bid hinges on Mouchel understanding being forsaken VT Group seeks Babcock takeover deadline VT underneath vigour to open books to Babcock

However, minute government presentations written to explain how Babcock worked out the suggest cost and given VT deserted it will strength out the item of any destiny synergies the dual companies need to reach a compromise.

At the time of the lifted offer, Babcock pronounced it would not tip the �1.3bn bid until it got to see all VT"s trusted monetary documents.

The spontaneous talks this week could outcome in an agreement to open the books fully.

Mr Lester has pronounced the suggest of in between 680p and 715p a share "significantly" undervalues VT, and the association is thought to be holding out for closer to 750p a share.

The financial directors from both companies additionally attended yesterday"s meeting.

The VT trainer is accepted to have the await of the company"s largest shareholder, Invesco, that controls an 11.2pc stake, to hold out for a higher bid. However, alternative large investors together with Scottish Widows and Artemis are penetrating to have VT open the books to Babcock in the goal of removing a improved price. Those shareholders additionally hold stakes in Babcock. The cross-holding is serve difficult given Invesco has a large interest in await services association Mouchel, that VT done a bid for before to Babcock creation the intentions public.

Babcock has been given a deadline of Apr twelve by the Takeover Panel to have a organisation suggest for VT, and the deadline for VT to have a grave bid for Mouchel is additionally appearing it has been set for Mar 8.

Babcock has done 3 offers for VT given last summer, with the lifted suggest deserted last month. It is saved by 0.701 Babcock shares and cash, together with �230m from the sale of VT"s shipbuilding business. That income had been set in reserve for acquisitions to enhance VT"s await services business, but Mr Lester has pronounced the association would cruise profitable it out to shareholders.

VT"s shares rose 3 to 675 yesterday.