Bid to land Amec 'frustrated' by company board

A bid consortium looking to land engineering group Amec was today being frustrated in its attempt to gain access to the company's books.

The interest of investment groups First Reserve Corporation and Texas Pacific Group emerged after a weekend of speculation about an approach to Amec.

The pair confirmed such a development, but said the board of Amec had blocked requests to carry out due diligence, which is key to an offer being made.

A joint statement from the two companies said: "The board has declined to provide access and there can be no assurance that any transaction will be announced or, if so, on any particular terms."

Despite the difficulties with due diligence, shares in Amec were 6% higher at 423p, valuing the company at more than £1.4bn (€2bn). Analysts have suggested the company might attract a price of around 450p, or £1.5bn (€2.22bn).

Amec, which has construction, energy and process management operations, is thought to be well placed to land contracts linked to the 2012 Olympics and the next generation of nuclear power stations.

First Reserve is a private equity firm specialising in the energy industry with over $12.5bn (€9.64bn) under management.

The pair's move comes after Australian mining and infrastructure group Downer EDI told its shareholders that it had initiated discussions with Amec about a merger.

Downer made its move in the summer as it sought to create a "truly global services business".

However, managing director Stephen Gillies said at Downer's AGM on November 1: "Our proposal was principally rejected on price. We do look to the UK for the skills and talent to support a larger and more international capability."