Meggitt receives fresh takeover approach from TransDigm
US bidder would offer more than Parker Hannifin has agreed to pay
Aerospace and defence group Meggitt has become the latest UK listed company to become the subject of a bidding war, after it received a takeover approach from US competitor TransDigm.
The UK company had already agreed a deal with Parker Hannifin, another US-based defence group.
The FTSE 250 company said on Wednesday that Cleveland-based TransDigm had suggested a possible cash offer of 900p per share, which would trump its rival’s proposal by 100p and would be almost double the company’s undisturbed share price.
The proposed takeover of the British defence company by Parker has come under scrutiny from the UK government, despite a list of commitments set out by the buyer to protect jobs, R&D and investment in the country.
The directors of Meggitt said they would continue to recommend the offer by Parker and it expects to send documents to shareholders on Monday next week.
Meggitt’s board added that it would assess Transdigm’s commitments to the government and staff against those made by Parker.
TransDigm, a large aircraft parts supplier, is listed in New York but describes itself as having a “private equity-like capital structure and culture”. No firm offer by the company has yet been made.
The company has a presence in the UK and existing relationship with the UK government, adding Marlow-based Cobham Aero Connectivity to its footprint earlier this year.
TransDigm did not immediately respond to a request for comment.