Tool hire firm that European rivals are just frantic to buy

THE bidding battle for tool hire firm Lavendon has reached boiling point after an existing offer was trumped by £26m.

French-owned Loxam claimed it had reached an agreement to buy Lavendon for £374m – £26m more than the amount offered by Belgian rivals TVH.

The two firms have been locked in a war, with both vying for ownership of the business.

Loxam, which supplies industrial equipment across Europe, offered to buy Lavendon for 220p per share and said in a statement yesterday that the firm’s directors ‘unanimously intended’ to accept the offer.

The move would likely see the firm take control of Lavendon’s 1,900-strong workforce as well as its market-leading business in the UK and Middle East.

Lavendon directors are poised to make £2.1m from the deal.

But TVH, which was given the go-ahead by German competition authorities on Monday, refused to accept the bid as a done deal.

The Belgian firm issued a statement saying its previous offer of £348m was no longer final and urged shareholders not to react. Insiders said the firm would likely be looking to make a counter-bid. Lavendon’s shares, which rose 10.7p to 231.2p yesterday, suggested the market thinks the battle is far from over.

The fight for Lavendon, which kicked off at the end of November, has been a surprise bidding war in the City.

The firm, whose cherry pickers were used in the making of the Harry Potter films and help with window cleaning at the Louvre in Paris, has seen its share price rocket from 139p.

TVH was the first to make a hostile takeover bid, but stumbled after the Lavendon board decided not to pursue its offer at the eleventh hour.

It was rebuffed, with bosses citing concerns over execution risk and potential disruption.

According to reports, the company’s largest shareholder, M&G, withdrew its recommendation because it believed the business could get a better deal.

Loxam shareholders are believed to still be mulling over the deal.