In third offer of the company for the support service group, Mouchel the consulting engineer and outsourcing business, is taking into account the increased bid of £330 million from VT Group Vosper Thornycroft. It has been confirmed by Mouchel in a report in Times that VT has elevated its all-share offer which was 294p in December to 260p per share.

Major share holders are being consulted for advice by the Surrey-based firm over the heightened share price. The offer is worth 305p or £342 million if one month average for VT share price is used.

The company stated, "The bid is worth 294p based on VT's closing price on Friday or 305p on VT's average price over the past month. At present, there can be no certainty that any formal offer will be forthcoming nor as to the terms on which any offer might be made".

VT had to face a loss of 18p to 489.94p, while Mouchel shares climbed 23.5p to 273.56p. Initial offer for Mouchel's major shareholders by VT was made in December with a 12.4% stake.

Last month Andy Brough, a Schroders fund manager stated, "The bid has got to start with a three before we would be willing to talk". Also, last month's 260p-a-share bid was said to be "seriously undervaluing the company" according to M&G, which owns just over 11% of Mouchel.