London builder ISG aims to fend off bid from US shareholder

The builder behind London projects, including an overhaul of the Old Bailey’s offices and the new City base of Swiss bank UBS, today stepped up its campaign against a hostile takeover bid from its biggest shareholder.

ISG is attempting to fend off a 143p-a-share, £70.8 million bid from US investment fund Cathexis, which has built up a 29.5% stake.

Cathexis added two million more shares this month following a disastrous profit warning which knocked nearly a third off the ISG share price.

Shares in ISG are down nearly two thirds this year and Cathexis reckons the firm should be in private hands.

It wants to scrap dividends to boost ISG’s financial strength.