The Kier Group has launched a takeover bid for fellow local government contractor, May Gurney, rivalling another bid from Costain.

Kier announced the terms of its bid on 24 April, which valued May Gurney at £221m or 315p a share. 'Scale, performance and reputation are three essential elements of a successful services business,' said Kier chairman, Phil White. 'The acquisition accelerates our planned growth in the sector and is value enhancing.'