Meggitt refuses to comment on ‘market speculation’ regarding potential bid from United Technologies
Meggitt refused to comment on talk that listed Hartford, Connecticut-based rival United Technologies was mulling an offer for listed UK-based aerospace engineering company, the Financial Times reported. The newspaper’s market report quoted Meggitt, which said it never comments on what the company descried as “market speculation.”
A market report in The Daily Mail yesterday, 16 July, mentioned gossip that United Technologies could pitch an offer valuing Meggitt’s shares at 625p, valuing the company at GBP 5bn (EUR 6.33bn).
A market report in The Times noted that some people doubted the bid rumour. Some sceptics said the UK Takeover Panel would have forced Meggitt to issue a statement if there was any substance to the speculation, according to the report.
The doubters attributed Meggit’s share price rise yesterday to a substantial short position in the company. In excess of 15m Meggitt shares have been loaned to short investors who were betting that the company’s share price would fall, the item said. Closing out the short positions would drive Meggitt’s share price up, the item added. Most of the other speculative buyers had not held Meggitt shares before the bid rumour began circulating, according to the report.
Meggitt’s share price closed 46.9p up at 537p in London yesterday, giving the company a market capitalisation of GBP 4.32bn.
Source Financial Times, Daily Mail, The Times