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WAS MOUCHEL RIGHT TO SNUB VT GROUP’S APPROACH?

ED WOOLFITT | GALVAN RESEARCH AND TRADING
We expect Mouchel’s rebuttal to be the start of a somewhat protracted battle with VT. In the meantime, we suggest that clients who bought the shares at 160p last week should sit tight, as the final valuation, should a deal be agreed, could well be in excess of 275p. VT was trying to snap up Mouchel at a bargain price.

ANDY BROWN | PANMURE GORDON
This is one of the more interesting bids we’ve seen in a while. VT is certainly interested, but it might want to sit on its hands for a while and see how the share price reacts. Mouchel was right to turn down the bid and take time to talk to shareholders. It will also give it the chance to see what other bidding interest is around.

JONATHAN JACKSON | KILLIK & CO
A purchase of Mouchel would provide the combined group with a significant potential order book, increased economies of scale and efficiency benefits and make a logical strategic fit. A deal would be beneficial for shareholders of both groups. VT has £300m for acquisitions and has the firepower to make an increased bid.