VT Group will not pursue its takeover bid for Mouchel, an insurance firm, for it wants to resist the hostile bid by competitor Babcock, a defense and engineering group. Though, it had only wished for this bid and had not entered into any written agreement.

Babcock and VT are UK companies that supply equipment to the British army.

The two major reasons for dropping the idea of takeover bid were lack of talks with Mouchel, and Babcock's approach for the same bid.

VT Group has affirmed that the takeover of Mouchel would create a noteworthy value for Mouchel as well as VT shareholders.

Two of the bid approaches made by Babcock to VT were declined by them.

Babcock shared that whether it is going to make any formal offer for VT or not is conditional to VT dropping its plans to buy Mouchel.

VT Group said, "The board of VT continues to believe that an acquisition of Mouchel would create significant value for both Mouchel and VT shareholders. The board of VT hopes that, as and when circumstances change, the board of Mouchel would wish to enter discussions regarding a proposal that adds value for both sets of shareholders".