17th Jun 2019 08:06
(Alliance News) - Defence contractor Babcock International Group PLC confirmed Monday it rejected in January an approach from outsourcing peer Serco Group PLC.
The proposal was unsolicited and "highly preliminary", Babcock said, and involved an all-share merger. No further proposal has been received since January.
"The board of Babcock, together with its advisers, carefully considered the proposal and unanimously rejected it, having concluded a combination of the two companies had no strategic merit and was not in the best interests of Babcock's shareholders, customers or wider stakeholders," said the company.
The Sunday Times had reported Serco made at least two attempts to merge with Babcock.
Serco has a market capitalisation of GBP1.67 billion and Babcock GBP2.35 billion, making a potential combination of the two FTSE 250 firms worth more than GBP4 billion.
Related Shares:
BabcockSerco