Mouchel in talks of its own

The repeated attempts by UK engineering and construction company Costain to buy Mouchel appear to have been thwarted as it has been revealed that ongoing talks are taking place for a possible takeover of Mouchel by Interserve.

London-based support services group Mouchel had indicated previously that Costain was not the only company showing interest in a takeover, and last week, outsourcing and infrastructure company Interserve confirmed that it had made an approach to the board of the company.

Meanwhile, Costain has confirmed that is not in advanced discussions with Mouchel, although it had made another approach with a revised proposal on February 17 "to make a recommended share and cash offer for the entire issued and to be issued share capital of Mouchel".

On February 25, Interserve announced that its own proposal was a combination of cash and shares.

It said its strategic rationale for the proposed transaction was to create an enlarged group that was a fully integrated market leader in consultancy and support services, particularly in key BPO (business process outsourcing) and infrastructure markets, through "the combination of the complementary range of services of the two companies, for the benefit of both sets of shareholders and stakeholders".