Ashtead, the third-largest US and UK construction equipment-rental company, has decided not to make a firm bid for Europe's largest truck-mounted lift rental company, Lavendon Group plc.

Ashtead's initial joint approach with Belgian forklift giant TVH Services NV was rebuffed by the Lavendon board this month after the two proposed a cash offer of 115 pence (USD1.82) a share.

Andy Murphy, an analyst at Singer Capital Markets Ltd, told Bloomberg that 166 pence (USD2.62) would have been a much fairer price. "Lavendon is an attractive business and many of the risks people were talking about even six months ago have gone."

TVH made two approaches on its own to Lavendon last year but was turned down by the company. According to Bloomberg, the takeover panel ruled on 12 January that TVH had until 8 February to make a firm offer or withdraw its proposal.

"I'm delighted that this uncertainty has been removed," Lavendon chairman John Standen said in a statement regarding Ashtead's withdrawal. "We have a clear set of objectives to enhance shareholder value and Lavendon is very well-positioned."