HAMPSHIRE’S army of thousands of VT group workers could play a decisive role in the company’s takeover battle, it has emerged.

Both current and former VT workers have significant shareholdings in the Botley-based shipbuilder turned support services giant and Babcock International is likely to have to woo them for its £1.3 billion takeover bid to be successful.

Thanks to years of bonuses paid in shares, VT’s past and present staff own enough of the company to together make them a top ten shareholder, and therefore a vital bloc.

Estimates put staff ’s holding at around three per cent of the company.

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Long a major regional employer, VT sold its shipbuilding business to fellow Hampshire firm BAE Systems last year, but many of the 3,000 employed there will still retain a shareholding.

Their support could prove to be crucial as VT battles the unwanted takeover, which has already seen it reject a succession of approaches from Babcock, which is best known for maintaining the UK’s submarine fleet.

The support of staff, who are thought likely to want to retain the group’s independence, could be especially vital with the other major shareholders divided on the offer.

Some institutional shareholders have indicated they are interested in a deal and urged the board to open its books to Babcock.

Scottish Widows Investment Partnership, which is the third largest shareholder in both groups, said: “These companies have looked at getting together before and we agree that significant shareholder value could be created through the merger of these two world-class engineering businesses.”

However it is understood Invesco, VT’s biggest shareholder with 12 per cent, is insisting on at least 750p a share, well above the current 685p-715p offer.

The Takeover Panel issued Babcock with a “put up or shut up” deadline last night.

A takeover would create a FTSE 100 services giant with operations across defence, engineering and nuclear power.

Paul Lester, VT’s £1m-a-year chief executive, instead wants to press ahead with takeover plans of his own – using a £500m war chest to buy local government outsourcing rival Mouchel for £330m.

VT has issued a comprehensive rebuttal of the logic behind the deal saying: “The board of VT considers that the company will produce higher growth and better returns for shareholders as an independent business.”