Bidders await initial Mowlem due diligence

Carillion’s due diligence investigators are said to be working on two scenarios: one would lead to a bid for the entire Mowlem group, while the other would be restricted to making an offer for parts – the facilities management division and/or the PFI portfolio.

There has been talk of others showing interest in Mowlem, including Acciona, the Spanish construction group, which is thought to have run the rule over Amec a week ago.

A source said directors from Morgan Est and Bluestone have been meeting with Mowlem to look at assets and the state of individual businesses.

The three elements of particular interest are Mowlem’s regional divisions in the South West, the North East and Scotland.

John Berry, a Bluestone director, is said to have headed up the interest in the latter two. However, Paul Smith, Morgan Sindall chief executive said: “No, we are not involved.”

Another potential bidder has decided to wait until Mowlem’s share price falls between 50p and 100p, making a bid of £100m realistic. “Anyone spending the sort of money that the current share price indicates – ie £500m – needs their head examined,” a spokesperson said.

The head of another construction group interested in snapping up Mowlem’s PFI business, should a break-up materialise, said a bid would need to be pitched at the current rate for
PFI equity and, as such, would be too high.

“However, if it’s the PFI team you actually want, it’s easier to just head-hunt them across,” he said.