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This case considers the British construction company AMEC. For a number of years the company has been facing difficult trading conditions and its financial results have been poor. This performance has been reflected in a share price which has heavily under-performed the market. At the end of 1995 the company was approached by the Norwegian company Kvaerner AS with a view to co-operation. In rejecting this overture the AMEC board precipitated a full-scale hostile take-over bid, which opened the company up to detailed city and public scrutiny. This case raises a range of issues which provide a number of teaching options. The issue of diversification and management resources is a strong theme. The implications for international competitiveness and critical mass are covered. There is scope for discussion and review of takeover bid tactics and the role of acquisitions in the market for management.