Ultra Electronics slips after Business Secretary orders probe into US private equity takeover
Ultra Electronics shares lost ground after Kwasi Kwarteng ordered an investigation into its takeover by Advent International.
In a victory for the Mail, the Business Secretary this week intervened in the £2.6billion deal.
He also banned Ultra – which makes crucial precision control systems for the military and commerical aerospace – from sharing any sensitive details about its work with the Government and armed forces with its American private equity suitor.
Ultra Electronics, which makes crucial submarine-hunting kit for the Royal Navy, has been banned from sharing any sensitive details about its work with its US private equity suitor
The intervention means Kwarteng could block the takeover on national security grounds – and even if he does not, it could drag out the process.
Ultra’s stock slipped 1.7 per cent, or 56p, to 3308p. It is still trading below the offer price of 3500p per share.
Ultra’s stock was worth 2156p in June before any talks of Advent making an offer for the firm were announced.
Analysts said the slight trip in the share price meant investors had broadly expected the intervention.
Nicholas Hyett, equity analyst at Hargreaves Lansdown, said: ‘It’s a bit of a wait-and-see game.’