Engineering merger off as Amec gives up Kentz chase
After a bid on 19 August, engineer Amec has given up on a purchase of smaller peer Kentz, concluding that "it does not intend to make an offer" (release).
Amec's first proposal valued Kentz at £660m, an offer that shareholders found unappealing. Kentz have also commented on the withdrawal of Amec's offer (release):
As previously indicated in our announcement on 19 August 2013, following receipt of the approaches from Amec and M+W Group GmbH ("M+W"), the Company together with its advisors undertook a detailed evaluation of the proposals before rejecting these approaches on the basis that they undervalued the business and its' future prospects.
Our reporter Suzie Neuwirth:
Morning Wire now understands that Kentz is not willing to give Amec access to its books unless it puts a higher offer on the table, creating a potential deadlock between the two firms.
Kentz confirmed earlier this month that it had rejected indicative offers from Amec and Germany’s M+W, claiming they undervalued the firm.
AMEC continues to see attractive opportunities to extend its geographic footprint in the Growth Regions, increase the range of services offered to clients, and enhance AMEC's position in its markets. AMEC will retain its disciplined approach to acquisitions, consistent with its clearly defined strategic and financial criteria.