British support services company, Mouchel is taking into consideration revised cash and share offer from its rival VT Group of 294 pence per share, valuing Mouchel at 330 million pounds, an 18%enhancement on the offer made two months ago. Shares of Mouchel moved up from 12.4 %or 31p to 281p in the early hours of trading, while VT Group shares chop down by 1.8% or 9p to 499p.
Based on Friday's closing price of 508p per VT Group shares, the new bid puts forward 0.579 new VT Group shares for every Mouchel share. The new scheme allows Mouchel shareholders to take 50 percent of the offer in cash, and specifies that Mouchel does not pay an interim dividend for the six months ending in January 2010. Mouchel paid £4.7m in provisional dividends, in the previous year.
"We believe that at this level the Mouchel board is more likely to engage in formal discussions as shareholder pressure builds", said Andrew Nussey at KBC Peel Hunt.
Two bid approaches from VT has been rejected by Mouchel. Valuing the group by 280 million pounds, Mouchel's shares closed at 250 pence on Friday.