Canadian construction and engineering company SNC-Lavalin will not be raising its offer for British company WS Atkins unless its current bid is challenged.
SNC-Lavalin agreed a 2,080p-per-share cash offer for the UK engineering consultant, amounting to around £2.1bn, last month.
It was noted that US activist investor Elliott Capital Advisors bought a 6.8 per cent stake in WS Atkins the day after the terms of the deal were announced. But Elliott has not revealed any plans it has for the company.
SNC-Lavalin, which is headed up by Scotsman Neil Bruce, previously of AMEC, today said its “offer price is final and will not be increased”. Unless a rival offer is made.
Or, in their own words:
SNC-Lavalin Bidco announces that the Offer Price is final and will not be increased except that SNC-Lavalin Bidco reserves the right to increase the Offer Price if there is, on or after the date of this announcement, (i) an announcement of a firm intention to make an offer for Atkins by a third party offeror; or (ii) an announcement of a possible offer for Atkins by a third party potential offeror.
Epsom-based Atkins has worked on recent projects including an Elan Valley aqueduct, Wessex Water optimiser and the Thames Tideway Tunnel.
With half of group sales coming from outside the the UK, the London-listed company has also worked on Yas Waterworld in Abu Dhabi, a Las Vegas flood control plan and a public library in Borg Al Arab, Egypt.
SNC-Lavalin has worked on projects including the Trans-Canada Highway, the development of baggage handling systems at Montreal airport and the reconstruction of East Grinstead station in the UK.