Kentz Drops After Amec Says It Won’t Bid for Oil Engineer
Shares dropped 9.2 percent in London to 499 pence after Amec said in a statement that it won’t pursue a takeover. The stock surged to 591 pence on Aug. 19, when Amec said it was considering a bid of as much as 580 pence a share.
Kentz said today Germany’s M+W Group GmbH, which also made an approach, must decide whether to make a formal offer by Sept. 16. The company has been open to discussions if potential buyers “put forward a proposal which properly reflected the long-term value of Kentz,” it said in a statement.
Kentz had gained 23 percent this year before Amec’s interest was announced. Chief Executive Officer Christian Brown said last month that the board had unanimously rejected both approaches and that the company wasn’t looking to sell itself.
Kentz’s order backlog has grown 12 percent to $2.8 billion since June 2012, it said in half-yearly results published Aug. 27. The Tipperary, Ireland-based company submitted a record $4.5 billion of bids in the second quarter.
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