Engineering giant Wood sees off takeover interest from investment firm

Wood is headquartered in Aberdeen

Shares in engineering giant Wood fell sharply on Monday after it saw off an attempt to buy out shareholders by an American investment firm.

Ahead of a bidding deadline this week, Apollo Management Holdings announced it would not make a formal bid.

Takeover rules state the New-York based company cannot make another attempt within six months.

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Aberdeen-based Wood's shares were down by 34%, at just over 144 pence, at 15:00.

In a Stock Exchange statement, Wood's management expressed confidence in its strategic direction.

"The board announced on 17 April that it had decided to engage with Apollo to see if a firm offer could be made and granted Apollo access to due diligence materials," it said.

"Following an extended period of detailed engagement, the board notes the announcement by Apollo today that it does not intend to make an offer for Wood.

"The board remains confident in Wood's long-term prospects and believes that, following a transformative year in 2022, including new executive leadership and a new strategy, Wood is well placed to deliver substantial value for shareholders."