Peterhouse chairman says no to Babcock bid

David Jackson, founder and current chairman of Peterhouse Group, is urging shareholders to turn down Babcock's £106m takeover bid. He says it undervalues the facilities management business he assembled over the past six years.

Babcock's offer, unveiled a month ago and which values Peterhouse shares at 194p, won the immediate backing of all Peterhouse's board members except Jackson and development director Simon Foster who set about putting together a rival bid.

This failed to materialise and on 15 April it was announced that Babcock's was the only bid on the table.

Since then Jackson and Foster have remained silent, but in a statement issued on the Stock Exchange this morning they said they "believe it undervalues Peterhouse".

The statement adds: "In reaching this conclusion, due consideration has been given to the current trading of the group, progress made in negotiations on settlement with Network Rail on rail maintenance transfer, and the resulting impact on gearing [the ratio of Peterhouse's debts to its assets]."