Peterhouse chairman still shuns Babcock bid

Peterhouse chairman David Jackson has re-iterated his statement that Babcock's takeover bid does not recognise his company's true worth.

In a joint statement with corporate development director Simon Foster issued to the Stock Exchange this afternoon, Jackson said: "Babcock has chosen not to revise its offer to a level that in our opinion would recognise the ongoing value of the Peterhouse businesses and their prospects. In particular, in our view it fails to fully value the benefit of the anticipated cash settlement for the transfer of the group's rail maintenance contracts.

"We recommend that shareholders await the announcement of the outcome of these negotiations which the Peterhouse board confirmed on 21 May were at an advanced stage. We anticipate this settlement and the transfer of relevant contracts, people and assets to Network Rail will have a material benefit on the cash flow and indebtedness of the group during 2004."

He concluded: "We strongly urge rejection of the offer as it continues to undervalue Peterhouse."

Babcock announced this morning that it has received acceptances from 47% of shareholders.