Bid rumour takes Multiplex share price to record high

Multiplex’s share price jumped 17% yesterday, taking it to a record high, triggered by news that it was the subject of a takeover approach.

Multiplex is keeping tight-lipped as to the identity of the mystery party. Heading the list of names of those who could be nibbling is Babcock & Brown, the Australian private equity group.

International private equity firms are also thought to be in the frame, with KKR, a US buy-out group, among those tipped as likely to be playing a hand, given its recent active role in the region.

Multiplex announced the latest development on the Australian stock exchange after rumours had spread around the Australian stock market. As a result, the group’s share price had risen steadily for four days.

The group might also have felt the need to flag up the news of the approach at an early stage because a month ago it was forced to hand over £7m to its shareholders as a result of a 22-month investigation by the regulator, over the alleged lack of disclosure regarding its mounting problems with Wembley.

Multiplex is thought to be taking a £200m hit on the Wembley Stadium project.

The group’s share price was at its lowest in May 2005.

The Roberts family, who hold 26% of Multiplex’s shares, have held talks with the mystery suitor.

John Roberts, the founder and former chairman of Multiplex, died last year. His son, Andrew Roberts, is currently chief executive and John’s three children – Andrew, Tim and Denby – are equal owners of the family trust.