The shipbuilder-turned-defence group yesterday confirmed it had bid for Mouchel twice, with the second offer at 260p a share on 2 December. The offer consisted of 0.475 new VT shares for each Mouchel share, with a 50 per cent cash alternative, but Mouchel said the bid undervalued it.
Mouchel gained 3.4 per cent yesterday, after around a 20 per cent increase on Friday and a 25 per cent increase yesterday.
VT and analysts say the move would make strategic sense. The company, which recently sold off its historic shipbuilding arm, is seeking another meeting with Mouchel to understand the basis of its rejection, and work towards a recommended offer.