HOOK (dpa-AFX) - Responding to the media speculation, Babcock International Group Plc. (BAB.L) confirmed Monday that it received a preliminary proposal from Serco Group Plc (SRP.L) in January 2019 regarding a potential all-share merger between the two companies. But, Babcock did not receive any further proposal from Serco.
Meanwhile, Babcock had rejected the proposal saying that a combination of the two companies had no strategic merit and was not in the best interests of its shareholders.
The Sunday Times reported that Serco made at least two attempts to merge with its bigger outsourcing rival Babcock, a deal that would create a 4 billion pounds defence giant.
According to the report, Serco made a preliminary approach late last year. Serco's Chairman Roy Gardner contacted his counterpart at Babcock, Mike Turner, who rejected the bid.
The report also said Serco returned with a more detailed proposal for an all-share merger in January.
Copyright RTT News/dpa-AFX