Meggitt shares plunge 11% as white flag is waved in bid battle by New-York listed aerospace firm TransDigm
Shares in defence contractor Meggitt have plunged this afternoon after one of its proposed buyers said it would not make an offer for the group.
Aerospace components business TransDigm had been considering a £9 per share takeover bid for the FTSE 100 company and had been given until September 14 to make a concrete proposal.
But it has pulled out, citing concerns over a lack of due diligence and a belief that the deal would not satisfy its financial goals.
Takeover target: TransDigm’s challenge to US corporate giant Parker-Hannifin – its competitor to grab Meggitt which produces parts for F-35 fighter jets (pictured) – is over.
It means the £6.3billion offer from Ohio-based manufacturing group Parker Hannifin remains the only bid to have been accepted by Meggitt’s board.
The deal has received controversy as it has raised national security concerns and comes amidst increasing interest in London-listed businesses by foreign companies.
In a statement, TransDigm’s chairman W. Nicholas Howley said: ‘We have long admired and studied the Meggitt business and believed that a combination between the two companies could provide value to investors of both companies.
‘However, based on the quite limited due diligence information that was made available and the resulting uncertainties, TransDigm could not conclude that an offer of 900 pence per Meggitt share would meet our long-standing goals for value creation and investor returns.’
Meggitt shares were 11 per cent down at 744.4p.