Babcock secures 42% of Peterhouse

An offer update issued by Babcock on the Stock Exchange this morning reports that 42% of Peterhouse's shareholders have indicated their acceptance of its £96m takeover bid.

The offer deadline ran out at 3pm yesterday. Babcock has now extended the offer by another three weeks to 27 May.

Babcock chief executive Peter Rogers said: "We are pleased to have received more than 40% acceptances from Peterhouse shareholders at this stage. The case remains that Babcock's offer is the only opportunity to participate in the future growth of a larger and stronger group."

The Babcock offer has been recommended by the board of Peterhouse other than chairman David Jackson and corporate development director Simon Foster. They proposed a management buy-out but subsequently pulled out from staging a rival bid.

Babcock's 194p a share offer is 38% higher than Peterhouse's average share price in the two months prior to the bid.