(Bloomberg) -- Engineering company Sidara said it won’t make a firm takeover offer for John Wood Group Plc, ending a months-long courtship.
Sidara made a 230 pence-a-share approach to Wood in May, representing a 52% premium, and was engaged in talks with the company’s board. It decided not to proceed to a formal bid “in light of rising geopolitical risks and financial market uncertainty,” according to a statement on Monday.
Wood’s shares tumbled as much as 40% to 118 pence, the biggest intraday slump since May last year. The board said it remains “confident in Wood’s strategic direction and fundamental prospects,” and reiterated annual financial forecasts.
Sidara’s decision is the latest twist in a bumpy period for Wood’s investors, with the Scottish firm getting no less than nine takeover offers from two potential buyers in just a year and a half.
Sidara’s fourth and final approach in May came about a year after Apollo Global Management Inc. walked away from a possible takeover of Wood. The US private equity firm had made five proposals, including one at 240 pence a share.
The large number of approaches in a short time since then has led to wild price swings, with the stock rising to almost 229 pence following Apollo’s final overture in April last year.
The shares traded down 37% at 124 pence as of 9:55 a.m. in London on Monday, the lowest intraday price since June last year.
--With assistance from Alexandra Muller.
(Updates with Wood response in third paragraph.)
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