Not sold just yet.......
https://www.thetimes.co.uk/article/c...bels-dqptzqxbs
Cobham takeover doubts as biggest investor Silchester rebels
A £4 billion US private equity takeover of Cobham, one of Britain’s largest aerospace and defence companies, was in trouble yesterday after its biggest shareholder told the board that the offer is not good enough and it should think again.
Even before the intervention of Silchester International Investors, which holds more than 11 per cent of Cobham but was not consulted on the offer, the proposed acquisition by Advent International threatened to raise issues for Boris Johnson and Andrea Leadsom, the business secretary, over the sale of global-leading intellectual property and technology to the Americans.......
Cobham yesterday recommended the 165p-a-share, £4 billion takeover, despite recently crashing out of the FTSE 100 after profit warnings and two emergency rights issue fundraisings within a year. Jamie Pike, 64, who has been chairman for less than a month, told investors the offer “represents an opportunity for shareholders to realise their investment in Cobham in cash in the near term”. He said that Artemis Investment Management, a 5 per cent shareholder, was backing the deal.
However, by the end of the day the offer, which needs the backing of investors representing 75 per cent of shares, appeared to be seriously damaged. Silchester, which confirmed that it had not been consulted on the offer, said: “We do not see the current offer as being compelling and . . . would encourage Cobham’s board to seek and respond to other parties who might offer better value.”
The offer is pitched at the level the shares were trading at in early 2017 after a fifth profit warning. While Mr Pike insisted 165p was 50 per cent higher than Cobham’s average share price in the past three months, it is less than half the level the shares were trading at before the warnings. The leading City analyst Sandy Morris, of the stockbroker Jefferies, questioned whether the offer fairly valued Cobham’s recovery in the past two years under David Lockwood, chief executive. “We were looking forward to a rejuvenated Cobham. We feel robbed,” Mr Morris said.
Mr Johnson and Mrs Leadsom will have to consider whether the proposed takeover should come under political scrutiny. Last year the takeover of GKN, another leading aerospace company, became a political issue over claims that Britain’s industrial base and heritage was in danger of being dismantled. Before that deal was completed, Greg Clark, then business secretary, secured commitments from the buyer, Melrose Industries, that it would consult with the government in the event of wanting to sell the business.
While the sale of Cobham does not raise national security issues, fears will be raised over the sale of intellectual property, technology and skills to a US private equity group whose raison d’être is to buy companies to sell them on to make returns for their backers. Experts said Advent could be looking at breaking up Cobham, which is a conglomerate of aerospace technologies and aviation businesses, into its constituent parts to maximise its returns.