VT Group drops move for Mouchel and lets in Babcock

Support services giant VT Group today opened its books to suitor Babcock International on the same day that it dropped its attempt to take over smaller rival Mouchel.

Tensions between VT and Babcock lessened but VT added: "There can be no certainty that any such agreement will be reached or that a formal offer for VT will be made."

VT, which owns the Metropolitan Police's vehicle fleet, last month made a final bid valuing Mouchel at £330 million. But Mouchel's board still refused to talk to VT.

VT said: "In view of there being no engagement with Mouchel at this time, and the interest of Babcock in VT, the board of VT has decided not to make an offer for Mouchel at this point."