SHARES in stock market-quoted civil engineering consultancy Mouchel soared more than 30% yesterday, after it confirmed a takeover approach.
The embattled company’s shares had slumped to below 60p in recent weeks from a year high of 268p, as investors headed for the exit amid concerns over the impact of government spending cuts and as Mouchel holds crucial talks over the refinancing of its debts.
Earlier yesterday, they rose to 77p, but the group – which develops infrastructure for councils and government agencies – said it believed the expressions of interest did not “reflect the true value of the company”.
Analysts said a price of around 100p per share, versus Friday’s close of 56.5p, would make a good starting point for any offer.
Andy Brown, of Liverpool-based stockbroker Panmure Gordon, said: “I have got a target price of 105p, somewhere near a pound would be a sensible start point.”
News of the approaches overshadowed a warning from Mouchel that trading conditions remained challenging, and it may need fresh funds if it failed to reach a refinancing deal with its banks.
