Wood Group shares were flat on Friday after it announced it had rejected a third unsolicited offer from an engineering and consultancy competitor.
Wood Group said it has unanimously rejected a third unsolicited takeover proposal from Dar Al-Handasah Consultants Shair and Partners Holdings Ltd (Sidara).
The latest cash offer of 220p for each Wood Group share was a 3.8% increase over Sidara’s previous 212p bid made on 14th May.
That 14th May offer had itself represented a 3.4% premium to Sidara’s initial 205p per share proposal submitted on 30th April. The increases don’t seem to be enough to tempt Wood Group’s board.
Despite Sidara again increasing its offer for the group, the Wood Group Board concluded that even the sweetened 220p per share offer “significantly undervalued” the company and its prospects.
The energy services firm stated that it can be no certainty that Sidara will follow through with a firm takeover bid or on what terms. Under UK takeover rules, Sidara must either announce a firm intention to make an offer for Wood by 5 p.m. on June 5th or walk away.
Wood Group is one of many UK companies currently being pursued for a potential takeover, and its shares are over 30% higher since news of Sidara’s interest first emerged in late April.
