One of the world’s largest banks has made a new bid of more than £350 million for Port of Dundee hazardous waste firm Augean.
Morgan Stanley has tabled an offer of 340 pence per share, which values Augean at £356.9m
Augean brought the first major decommissioning project to Dundee.
The firm worked on the prominent Shell Curlew decom project at Port of Dundee for over a year.
Augean also has four sites in Aberdeen as well as a Peterhead facility. It is headquartered in Wetherby.
Bidding war for Augean
That offer, of 325 pence per Augean share, valued the hazardous waste firm at £341m.
The Eleia bid had been recommended for approval by the Augean board.
They have withdrawn that recommendation and are suggesting the new bid from Morgan Stanley be approved by shareholders.
Documents showing the new offer read: “The Augean directors consider the terms of the increased MSIP (Morgan Stanley Infrastructure Parnters) offer to be fair and reasonable.
“The Augean directors have therefore withdrawn their recommendation of the Eleia offer.”
In May, Morgan Stanley made an offer worth around £300m for the firm.
Two extensions were granted to try and complete the deal before the other bidder emerged.
Shareholders are anticipating a counter bid may follow as Augean’s share price today soared beyond the new offer price. At lunchtime its stock was trading at 346p.
The firm said: “In light of the superior proposal of 340 pence per Augean share, the Augean directors intend to recommend unanimously that Augean shareholders vote in favour of the resolutions to implement the increased MSIP Offer.
“Accordingly, the Augean directors have withdrawn their recommendation of the Eleia offer.”
A general meeting is planned to consider the new offer on September 30.