Board of defence services firm reported to be meeting this afternoon to decide whether to raise £1.3bn for buyout

Defence services firm Babcock is nearing a decision over whether to raise its £1.3bn takeover offer for rival company VT Group.

According to reports in the Daily Mail, the Babcock board will meet this afternoon and could make an announcement as early as Thursday.

VT, which was forced to abandon its bid to takeover Mouchel to fend off the unwelcome approach from Babcock, has already rejected two previous proposals from the firm.

The last offer was between 680p to715p per share.

VT, which is up 9p at 687.5p, is understood to be holding out for an offer of around 750p.

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