16th Jun 2019 12:20
(Alliance News) - Serco Group PLC made at least two attempts to merge with fellow FTSE 250 outsourcer Babcock International Group PLC, according to a report in the Sunday Times.
Serco is understood to have made a preliminary approach late last year, the newspaper said. Serco Chair Roy Gardner contacted the outgoing Babcock chair, Mike Turner, who rejected the suggestion, it said.
Serco is understood to have returned with a more detailed proposal for a no-premium, all-share merger in January, the Times said.
The enlarged group would have been chaired by Gardner and run by Serco Chief Executive Rupert Soames, according to the Times. Babcock's board rejected the proposal, which would have led to the departure of chief executive Archie Bethel and allowed Turner to retire with a big deal, it said.
https://www.thetimes.co.uk/edition/business/sercos-4bn-swoop-on-babcock-xn8gmw93p
Former Royal Dutch Shell PLC executive Ruth Cairnie is scheduled to replace Turner as chair after Babcock's annual general meeting on July 18.
Serco has a market capitalisation of GBP1.67 billion and Babcock GBP2.35 billion, making a potential combination worth more than GBP4 billion.
Related Shares:
BabcockSerco