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

Billy Ehrenberg
Follow Billy
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.