Oil services company John Wood Group rejects £1.4bn takeover offer

Oil services company John Wood Group rejects £1.4bn takeover offer

The British oil services company John Wood Group has rejected a £1.4bn takeover offer from a Dubai-based rival, Sidara, which “fundamentally undervalued” the company.Aberdeen-based Wood is the latest British company on the London Stock Exchange to face takeover speculation amid deepening concerns that UK-listed stocks are undervalued compared with other markets.In a statement the Wood board said the FTSE 250 company had received an unsolicited approach from Sidara to snap it up for a price of 205p a share, but had unanimously rebuffed the offer.“The board carefully considered the proposal, together with its financial advisers, and concluded that it fundamentally undervalued Wood and its future prospects,” it said.A spokesperson for Sidara declined to comment.The approach emerged about a year after the US-based private equity firm Apollo Global Management abandoned a 240p-a-share bid for Wood after multiple attempts and offers, without citing any reasons.Wood is not alone in being a London-listed takeover target. A multibillion-pound bidding war appears to be developing around the FTSE 100 miner Anglo-American after it dismissed an offer from rival BHP as undervalued. The Swiss mining company Glencore is also understood to be drawing up an approach and there is speculation that the British-Australian miner Rio Tinto