Kier to bid for Mouchel? Housebuilder confirms "preliminary discussions"

 
Billy Ehrenberg
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Kier's share price opened slightly lower after it released the statement

Kier Group's share price opened slightly lower this morning after it made a statement confirming it has held preliminary discussions regarding the possible acquisition of infrastructure builder Mouchel.

According to online blog Betaville the going price for Mouchel will be £400m, although other sources mention figures as high as £500m. Mouchel was forced into administration in 2012 and a sale or IPO in 2015 would complete a remarkable recovery.

The Liverpool Echo added that the Merseyside-based company could also be a target for Interserve, a rival infrastructure group.

Like many companies in the construction industry, Kier is having a strong year; in September it announced a 59 per cent increase in underlying operating profits for the 12 months to June 2014.