Amec wins powerful supporter

M&G, one of the biggest shareholders in the embattled construction group Amec, has decided to reject the pounds 360m offer from Kvaerner and criticised the bidder's tactics.

The move is an important fillip for Amec just days before Monday's closing date. There are indications that other big shareholders may be moving its way.

An M&G spokesman said: "It looks like the wrong time of the cycle to be selling." The 100p a share being offered by Kvaerner would be "the wrong price to do it".

Management changes at Amec should be given time to work through, he said. He also hit out at the time-scale invoked by Kvaerner. "The whole thing has been too rushed through."

The investment management group holds 8 per cent of Amec's ordinary shares and 10 per cent of the convertibles, making it the group's second largest shareholder.

Another big investor said yesterday it would also be rejecting the bid. "Quite simply, we think it undervalues [Amec] by a reasonably obvious margin."