BLOW OUT

US Amec bid is abandoned
Rebecca O'Connor



Shares in Amec, the beleaguered engineering group, dropped 2 per cent to 421p this morning, after two US private equity groups abandoned a bid offer.



First Reserve Corporation and Texas Pacific said today that they would not be pursuing the offer "at this time", after Amec refused to open its books.

Under pressure from shareholders, Amec previously rejected as too low an offer of £1.5 billion from the bidders.

It issued a profit warning last week after a year-long strategic review, in which it laid out plans to sell its construction businesses and return £100 million to shareholders.

The group has liabilities of more than £400 million.

In a joint statement, First Reserve and Texas Pacific said: "The consortium now confirms that, in light of the board's refusal to provide due diligence access, it will not be making an offer for Amec at this time."

The latest bid was the second Amec takeover deal to fall through this year.