News: UGL selected as preferred bidder for DTZ

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Engineering and property services company UGL Limited (ASX:UGL) has confirmed that it has been selected as a preferred bidder for unprofitable UK real-estate broker DTZ Holdings Plc (LON:DTZ).



DTZ says the companies combined property businesses would create the world's third-largest real-estate services firm with annual pro-forma revenues of $1.8 billion.



DTZ chief John Forrester has told Bloomberg that the amount of the offer has not yet been decided and refused to reveal if the offer would be high enough to cover the company’s debt.

UGL advises that there is no certainty it will make a firm offer for DTZ but will update the market when appropriate.



In the 2011 financial year UGL increased its net profit 9.7 per cent to $158.7 million.