6:10am Monday 22nd March 2010
By Julian Robinson
A TAKEOVER of Hampshire shipbuilder-turned-support services specialist VT Group looks set to move a giant step closer this week.
Defence contractor Babcock International could offer terms for the acquisition of the Botley-based outsourcing group with negotiations between the two parties due to come to a head in the coming days.
It comes days after VT allowed Babcock access to its books in order to calculate the cost savings a merger could provide.
However it is thought a price for any takeover has yet to be agreed.
Three approaches from the submarine maintenance specialists have already been turned down, the last of which was said to be worth between 680p and 715p a share, which would value VT at up to around £1.3 billion.
Paul Lester, VT chief executive, has argued against the logic of a merger, saying it significantly undervalues the business.
However, Scottish Widows - a large shareholder in both Babcock and VT - has reportedly thrown its weight behind a deal and said significant shareholder value could be created.
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