11th Aug 2021 16:10
(Alliance News) - Meggitt PLC on Wednesday said it is considering a new takeover bid from TransDigm Group Inc, valuing the company at GBP7.03 billion.
The 900 pence per share cash offer by the Cleveland, Ohio-headquartered aerospace manufacturer was made on Tuesday.
Shares in Meggitt jumped 18% to 843.60p in London on Wednesday afternoon, valuing the company at around GBP5.58 billion.
"The board of Meggitt is currently reviewing the proposal as well as TransDigm's associated information request and will continue to consider carefully not only the financial terms of any offer but also TransDigm's plans for the company," Meggitt said.
On August 2 Meggitt said it had accepted an 800 pence per share or GBP6.3 billion takeover offer from Parker-Hannifin Corp.
The company made clear that its directors continued to "recommend unanimously" to shareholders the offer by Parker announced last week.
Cleveland, Ohio-based Parker makes engineered products for the aerospace, automotive and manufacturing industries. Meggitt, based in Coventry, England, provides aerospace and defence components. A US takeover of a UK company in a sensitive industry threatens to be controversial.
Aerospace and defence firm Cobham exited the London Stock Exchange in January 2020, following a contentious acquisition by US private equity company Advent, which raised national security risks. In addition, Nadine Cobham – daughter-in-law of the firm's founder Alan Cobham - at the time hit out at the deal.
By Will Paige; [email protected]
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