Tarmac in talks for Johnston group

AGGREGATES company Tarmac is this weekend considering a bid for quarries and engineering company Johnston Group to scupper a rival offer from Ennstone.

Tarmac, which is owned by global mining giant Anglo American, could pounce as early as tomorrow for Johnston, but will need to trump Ennstone's £48.3 million bid.

Ennstone has backing from the Johnston family, which controls 50.1% of its target, and its bid will be declared unconditional on Wednesday unless a rival offer is made at a 10% higher price.

That gives Tarmac, which has a 25% holding in Johnston, just a couple of days to table an offer. Its adviser, Cazenove, is believed to have met Johnston's adviser, Close Brothers, on Friday.

Tarmac may, however, choose to gamble that opposition to the deal from some of Ennstone's shareholders could yet foil the takeover.

Ennstone needs its own shareholders' approval and faces opposition from key investors.