Colt Group had been on radar of US rivals including L-3 Communications prior to Fidelity’s takeover bid – market report
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Colt Group, a listed UK-based telecoms company, was said to have been a possible takeover target for US-based rivals including L-3 Communications prior to Fidelty’s takeover bid this week for Colt, the Financial Times reported.
The newspaper did not cite a source for the rumour.
Fidelity announced a 190p per share cash offer for Colt Group on Friday, 19 June. The bid values Colt at approximately GBP 1.7bn (EUR 2.37bn).
Although Colt’s independent directors believed Fidelity’s offer to be lower than the valuation the company could attract from a rival bidder, Fidelity’s threat to retain its 67% shareholding in Colt until at least the end of next year, led them to concede that the prospects of a competing offer were slim, the item said.
Fidelity’s bid is not subject to the UK Takeover Code and therefore its commitments not to improve its offer or to sell its stake may not be enforceable, according to dealers cited by the report. This led to speculation that Colt’s second-largest minority shareholder Southeastern Asset Management, might try to secure an improved offer, the item said. Southeastern holds a 4.7% stake in Colt, the article noted.
Colt Group’s share price closed 31.3p up at 188.8p in London on Friday, valuing the company at GBP 1.68bn.
Financial Times