Kentz Corp snubs AMEC, M+W Group bids
Kentz Corporation Ltd rejected approaches from AMEC Plc and M+W Group to take over the engineering firm. London-based Kentz said both offers undervalued their company. AMEC is a rival of Kentz but is a larger firm. M+W Group is an engineering and construction company based in Germany.
A potential bidding war between the two companies was put to a halt when the Kentz board unanimously rejected both offers. On August 5, AMEC made an estimated GBP 680 million bid for Kentz. M+W, meanwhile, made a lower offer. Kentz's market cap is currently placed at 561 million pounds.
Earlier this month, AMEC had told reporters that it would try to strike acquisition deals with companies in the oil and gas sectors in the second half of this year. If no deals were made, AMEC said it would look into a possible cash return for its stakeholders. In a statement, AMEC said its takeover of Kentz would "extend AMEC's geographic footprint in the Growth Regions, increase the range of services offered to clients, and enhance AMEC's position in two of its core markets; oil & gas and mining."