Engineering giant Wood opens door to US takeover bid

Wood is based in Aberdeen

One of Scotland's largest companies has opened the door to a possible takeover by a New York-based investment fund.

Engineering giant John Wood Group said it would open its books for scrutiny by Apollo Global Management after rejecting several previous approaches from the fund.

Its fifth and final conditional offer amounts to nearly £1.7bn.

Wood's board stated on Monday that it was willing to engage with Apollo after discussions with shareholders.

Aberdeen-based Wood rejected Apollo's earlier offers on the grounds that they undervalued the company's future prospects.

• Engineering giant Wood rejects takeover offers

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In a stock exchange announcement, Wood said: "The board remains confident in Wood's strategic direction and long-term prospects, following a transformative year in 2022, including new executive leadership and a new strategy.

"However, having now weighed all relevant factors, particularly feedback received from Wood shareholders, the board has decided to engage with Apollo to see if a firm offer can be made on the same financial terms as the final proposal.

"Accordingly, the board will grant Apollo access to due diligence materials."

The deadline to make a formal offer has been moved from Wednesday this week until the middle of next month.