Construction and support services group Alfred McAlpine was today under pressure from shareholders to reconsider its rejection of a £584m (€837m) bid approach.
McAlpine spurned the 570p a share proposal from Wolverhampton-based rival Carillion this week as “materially undervaluing” the company.
But today investment fund Schroders – McAlpine’s biggest shareholder with a 10.3% stake – said it would accept the offer. Carillion has also received backing from New Star Asset Management, a near-5% shareholder in McAlpine.
McAlpine pointed out that Schroders also owned 20.1% of Carillion and said it was “disappointed that Schroders has chosen to make this statement”.
The firm said this week it had ended discussions with Carillion after rejecting an initial approach in August, but will now face pressure to reopen talks with its rival.