Babcock's second punch 'no knockout' for VT Group

By The Newsroom
Published 18th Feb 2010, 20:00 BST
Updated 18th Feb 2010, 20:06 BST
VT GROUP has set its sights on an offer of 800p a share from suitor Babcock International, and analysts last night said it would take an approach of at least 750p to get VT to open its books.

Babcock yesterday increased its proposed offer to buy the defence and public services firm to as much as 1.29 billion, with a proposal to pay 0.701 new Babcock shares plus an unspecified sum of cash for every VT share. VT said the proposal was worth between 680p and 715p a share.

Shares in VT closed up 6.2 per cent at 660p, having earlier hit a new 20-month high of 665p and extended their gains so far this week to 30 per cent. Shares in Babcock ended the day down 2.3 per cent at 553p.

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