12:30pm Sunday 7th March 2010
THE destiny of the Botley-based VT group could lay in the hands of its employees.
The former shipbuilding business, now a support services specialist, is currently locked in a battle with rivals, Babcock International, who, in their latest takeover offer, have put in a £1.3bn bid.
The battle for control could be decided by VT staff, past and present, who, for years, have had bonuses paid in shares.
That means that, together, they are a vital bloc of shareholders who must be won over if Babcock are to get their way. Estimates put the VT staff holding at around three per cent of the company.
A long-time major regional employer, VT sold its shipbuilding business to fellow Hampshire firm, BAE Systems, last year, but many of the 3,000 who are employed there will still have kept their shares.
Their support could prove to be crucial if VT is to avoid takeover by Babcock, which is best known for maintaining the UK’s submarine fleet.
Most VT staff would want to see the group retain its independence.
Other major shareholders remain divided with Invesco, the largest, firmly against takeover and Scottish Widows Investment Partnership, the third largest, saying “significant shareholder value” could be created by a merger.
A takeover would create a FTSE 100 services giant with operations in defence, engineering and nuclear power. But chief executive, Paul Lester, has acquisition plans of his own. He wants to buy outsourcing rival, Mouchel, for £330m.
VT has issued a comprehensive rebuttal of the logic behind the deal saying: “The board of VT considers that the company will produce higher growth and better returns for shareholders as an independent business.”
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