News Column

UPDATE: Meggitt Declines Comment On Takeover Rumours

July 16, 2014

Jon Darby

LONDON (Alliance News) - Meggitt PLC saw it shares surge to the top of the FTSE 100 on Wednesday after the Daily Mail newspaper reported on rumours that the US's United Technologies Corp plans to launch a takeover bid.

A spokesman for Meggitt declined to comment on the report.

The engineering and aerospace company's shares were up 8.2% at 530.32 pence.

The Daily Mail said dealers at the Farnborough International Airshow heard that Connecticut-based United Technologies Corp, which has often been mentioned as a possible bidder for Meggitt, could be about to make a GBP5 billion, or 625 pence a share, cash bid for the UK company. At its current price, Meggitt has a market capitalisation of GBP4.27 billion.

Meggitt's most recent trading statement showed its financial position remains "very strong" and that it "expects further improvement driving by ongoing focus on cash generation".

The report follows interest from a number of US companies in London-listed companies. Most recently Shire PLC said on Monday it is "willing to recommend" to its shareholders a raised takeover offer from US drugs maker AbbVie Inc. That came after AstraZeneca PLC fended off a takeover offer from Pzifer Inc in June.

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Source: Alliance News

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