British defense service provide VT Group called off its Mouchel takeover plans on Thursday as the company decided to focus on its attempts to resist the hostile takeover attempts made by Babcock International to buy VT.

Earlier, in February, VT offered a final price of £330 million to buy consulting engineer and outsourcer Mouchel improving its initial bid made in December. VT's attempt to buy Mouchel was a part of the company's diversification plans.

VT's statement reasoned Mouchel's failure to engage in talks for its withdrawal from the offer. However, the company expressed that that its board believed that the acquisition would unlock significant value for both the companies.

"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," the statement further said.

VT, which sold its ship building unit to BAE Systems last year, is currently sitting on a large pile of cash put aside for acquisitions.

While it was in the process of making a final bid, last month rival Babcock approached VT with a takeover offer of 633.9p per share and then raised it to 680p to 715p. Though VT rejected those offers, the company is now planning to issue some special bonus to shareholders to strike out any kind of hostile attempt made by Babcock.