BIDDING fever spread to the construction sector yesterday with Kvaerner, the Norwegian shipbuilding and offshore engineering group, acquiring a 12% stake in Amec.
Kvaerner, parent to the Kvaerner Govan shipyard in Glasgow, paid 100p a share for 20 million Amec shares.
Talks between Sir Alan Cockshaw, chairman and chief executive of Amec and Erik Tonseth, chief executive of Kvaerner, broke down yesterday as they were unable to find a way forward with their negotiations.
Kvaerner, which believes that the two businesses complement each other, is considering its options. If it decides to mount a full cash bid for Amec, it will not be at a price in excess of 100p per share, barring any rival offer.
There was some surprise among City analysts that anyone would want to buy control or a stake in any UK contractor given the sector's current problems.
In the first half to June, Amec reported a drop in profits from #9.1m to #6.1m and earnings per share were only just positive. However, the dividend was maintained at 1.5p.
If a competitive bid situation for Amec does arise, analysts have speculated that German or Middle Eastern groups may enter the fray.
There have been market rumours of a merger between Amec and McAlpine following the recent asset swap between Tarmac and George Wimpey.
News of Kvaerner's share raid, carried out by SBC Warburg, pushed Amec shares up 21p to 99p in heavy trading.
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