Babcock hits back at Jackson's claims

Babcock has been quick off the mark in responding to this morning's statement from David Jackson, chairman of Peterhouse, saying that Babcock's £106m takeover bid for Peterhouse undervalues the facilities management business he has assembled over the past six years.

Jackson and Peterhouse development director Simon Foster are urging shareholders to turn down the bid.

Babcock has hit back saying that it is the only bid on the table, given that Jackson and Foster have pulled the plug on their attempted management buy-out, adding that the offer of 194p a share is 38% higher than Peterhous'e average share price in the two months prior to the bid.

Babcock adds that it "took into account the on-going negotiations on settlement with Network Rail on rail maintenance transfer and the likely anticipated outcome".

Babcock chairman Gordon Campbell said: "Babcock's offer has been recommended by the board of Peterhouse, other than Jackson and Foster, since announcement and continues to be.

"For their own reasons, Jackson and Foster have declined to support this recommendation but have been unable to provide an alternative offer. Jackson's and Foster's announcement today offers no significant new information.

"Babcock's offer is the only opportunity for shareholders to participate in the future growth of a larger and stronger group."

The anticipated result of Babcock's bid being accepted is that Jackson will be out of a job.