CONSTRUCTION firm Costain’s pursuit of services provider Mouchel could be approaching its end game after their first talks since December.

Market sources claim Mouchel’s leading shareholder, Schroders has set a deadline of tomorrow for a deal to be struck, which could also flush out other potential suitors.

Last month, Costain offered Mouchel 0.5531 shares and 30p in cash for each Mouchel share.

Mouchel, the infrastructure maintenance and services provider which works with Liverpool and Knowsley councils on functions such as landscaping and traffic management, did not reject the offer but told its investors to take no action in relation to the bid.

However, sources close to the deal were quoted as saying: “It (a deal) has support, but I think Mouchel and its shareholders are holding out for an extra 10p or so.”

The latest Costain offer would value Mouchel at approximately £185m.

Andy Brown, an analyst with stockbroker Panmure Gordon, said: “This should be good news as far as Mouchel is concerned because the big risk is that it (a possible deal) just goes into drift mode.

“It might bring some of the other potential bidders out of the woodwork,” he added.