Aberdeen company Wood (WG.L) has rejected a second, improved takeover bid, worth nearly £1.5 billion from a Middle East suitor.
The latest cash offer from Lebanese company Dar Al-Handasah Consultants Shair and Partners, also known as Sidara, comes in at £2.12 per share.
This represents an increase of about 3% from an initial approach, worth £2.05 per share, at the end of April.
Wood’s shares closed 185.6p at Wednesday’s London market close, down 7.48%.
A statement from Wood said: “The board carefully considered the latest proposal, together with its financial advisers, and concluded that it continued to fundamentally undervalue Wood and its future prospects.
“Accordingly, the board unanimously rejected the latest proposal.”
Middle East suitor has until June 5 to make firm offer
The FTSE250 company added: “There can be no certainty either that an offer will be made or as to the terms on which any offer might be made. Further announcements will be made as appropriate.”
Both of the Beirut firm’s bids are lower than an proposed takeover last year.
Wood rebuffed four successive takeover bids from Apollo, with the US private equity giant eventually walking away after a final £1.7bn, or 240p per share, offer last April.
Under City “put up or shut up” rules, Sidara has until 5pm on June 5 to either announce a firm intention to make an offer – or walk away.
The FTSE250 company added: “There can be no certainty either that an offer will be made or as to the terms on which any offer might be made. Further announcements will be made as appropriate.”
Under City “put up or shut up” rules, Sidara has until 5pm on June 5 to either announce a firm intention to make an offer – or walk away.
Wood provides consultancy, project management and other services in 60 countries.
It is one of the north-east’s biggest employers.