Apollo had until May 17 to announce a firm intention to offer. It released a brief statement to the London Stock Exchange on May 15 stating it did not intend to make an offer, but without giving an explanation. Under UK takeover rules, Apollo cannot make another bid for Wood within six months.

Shares in Wood plunged by about a third after Apollo’s rejection. Apollo has made five bids in total this year, the first four being rejected. Wood finally agreed to engage with the private investor on receipt of a fifth bid in April of 240 pence per share that valued the Aberdeen-based group at about $2 billion.

According to media reports, a source close to Apollo said it had concluded after further examination that the deal was not worth pursuing at the price offered.

Responding to Apollo’s decision, Wood said it remained confident in its strategy and long-term prospects, adding that after a transformative year in 2022, it is well placed to deliver substantial value for shareholders.

Last December, activist shareholder Sparta Capital had urged the Scottish engineering group to buy back stock to boost its valuation, stating that the company was substantially undervalued and vulnerable to a takeover.

Author: Elaine Burridge, Freelance Journalist