British construction and property firm Kier Group confirmed yesterday that it had held preliminary discussions regarding the possible acquisition of infrastructure compatriot Mouchel.
The Bedfordshire-based Kier said in a statement yesterday that it was in early discussions over a bid but that “there can be no certainty that an acquisition of Mouchel will be completed”.
A price range of between £300m and £500m has been mooted for the Merseyside-based Mouchel, which was forced into administration in 2012. The group has been in the hands of RBS, Barclays and Lloyds since then, with the trio hiring Rothschild earlier in the year to explore company’s options – which include a IPO in 2015.
Other possible bidders include the Babcock-owned VT Group and the Reading-based Interserve.
Liberum analyst William Shirley said: “The business would fit on the infrastructure side providing a boost to [Kier’s] roads business.
“Management are currently looking at the business in its entirety although we are less sure about the fit for the smaller BPO business… We would expect Kier to pay for most of it with new equity.”
Kier declined to comment.