Mouchel in advanced talks, shares jump

24th Feb 2011 13:03

Shares in Mouchel jumped after the outsourced services provider said it is in 'advanced discussions' with a potential bidder.Engineer Costain has bid for Mouchel, whose activities include providing CCTV-equipped cars used by local authorities to nab traffic offenders, twice in the past three months, but said today that it is not in discussions with Mouchel.Mouchel has not named the potential bidder, though broker Panmure Gordon named engineering and construction group Balfour Beatty, support serves group Interserve and outsourcers Mitie or Serco as possible bidders. The broker expects that any deal to be above the 153p a share last offered by Costain."The board is pleased to confirm that it is now in advanced discussions with one potential offeror and has signed a co-operation agreement with that preferred trade purchaser in relation to a potential offer being made for the company," Mouchel said. "Although the board of Mouchel considers that the company has a strong future as an independent business, it believes that the strategic logic of a combination of Mouchel and the preferred possible offeror would provide the best option to deliver value to shareholders."