Mouchel rejects Interserve approach

The group, which provides consulting and business services for public sector clients, dashed hopes of a deal with rival Interserve after it said the group slashed its approach to £151m after going through Mouchel’s books.

Mouchel, which last month chose Interserve as preferred bidder over Maidenhead-based construction firm Costain, decided it was not in shareholders’ interests to continue discussions with either firm after consulting its biggest investors.

Costain had also reduced its £175m approach for Mouchel after carrying out due diligence, it emerged today.

Mouchel said the advances had been an “unwelcome disruption” to the business as it struggles amid public sector belt-tightening.

Half-year results today reveal the group saw underlying pre-tax profits slump to £4.1m after revenues dived by 13 per cent in the six months to January 31.