Advent among those considering offer for Senior

(Sharecast News) - Private equity firm Advent International confirmed on Friday that it is considering a possible takeover offer for engineer Senior. The statement from Advent came after Senior said it had received and rejected several takeover proposals in the last couple of months, but that discussions with two suitors were ongoing.

The company received a preliminary, non-binding all-cash proposal from a potential offeror on 14 January that was unanimously rejected on the basis that it fundamentally undervalued the group and its future prospects. Two subsequent, higher proposals from the same offeror were received and rejected in February.

Following these approaches, Senior appointed Lazard and Jefferies to initiate discussions with a limited number of third parties regarding a possible offer "to determine the value that could potentially be achieved".

"Following a period of discussions with these other parties, the company confirms it has received two further, superior all-cash proposals from other potential offerors. Discussions with potential offerors remain ongoing," it said.

As a result of these discussions, Senior has postponed the start of the £40m buyback programme that has been due to start following the full-year results. "The board will keep this under review and make a further announcement as necessary," it said.

At 1335 GMT, the shares were up 21% at 311.50p, having already shot higher on the initial statement from Senior.

Advent said there can be no certainty that an offer will be made nor as to the terms on which any offer might be made. A further announcement will be made in due course when appropriate, it added.

Under UK takeover rules, the PE firm has until 1700 GMT on 27 March to either announce a firm intention to make an offer or walk away.