Cobham sold to US private equity firm...
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Cobham sold to US private equity firm...
Under the terms of the deal shareholders will be entitled to receive 165p in cash per share - a premium of 34.4% on the 123p closing price on July 24.
https://markets.businessinsider.com/...bln-1028383604
https://markets.businessinsider.com/...bln-1028383604
Ecce Homo! Loquitur...
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.
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.
I know a couple of people working on the US tanker project.
if that is representative of Cobham’s performance, it doesn’t surprise me that they have gone down the pan.
Sir Alan must be turning in his grave.
if that is representative of Cobham’s performance, it doesn’t surprise me that they have gone down the pan.
Sir Alan must be turning in his grave.
A but the UK is one of THE Great investors elsewhere melchett - it'll be all that keeps the country afloat post Brexit
If the UK stops people buying home companies then you'll find retaliation
With manufacturing only 10% of activity all that's left will be tourism..................
If the UK stops people buying home companies then you'll find retaliation
With manufacturing only 10% of activity all that's left will be tourism..................
A but the UK is one of THE Great investors elsewhere melchett - it'll be all that keeps the country afloat post Brexit
If the UK stops people buying home companies then you'll find retaliation
With manufacturing only 10% of activity all that's left will be tourism..................
If the UK stops people buying home companies then you'll find retaliation
With manufacturing only 10% of activity all that's left will be tourism..................
Well - its not often a country hands it self over and lets the lunatics run the asylum ...............................
I see Mr Trump is going to offer a trade deal...................
I see Mr Trump is going to offer a trade deal...................
All that yummy Chlorinated chicken.............................. and you Brits better not try and tax Amazon or Apple or Uber - 'cos they are REAL AMERICAN companies
Lot of ill informed rubbish on here. Cobham is not being relocated lock stock and two smoking refuelling hoses to the US, it has just been acquired by a private equity company, a company that has as its sole purpose the acquisition of other companies. It will remain a British headquartered company, it has just had a change of parent company in effect. This is a perfectly normal acquisition, the sort of thing that goes on all the time, and NOT just a one way street either. The UK is a huge inward investor into the US, and defence and aerospace companies figure large in that, in point of fact Cobham themselves have acquired quite a large number of US companies, that will still be run from the UK.
I don't own this space under my name. I should have leased it while I still could
So why do all my Amazon bills come from Luxembourg?
Or Microsoft from Dublin?
Or Microsoft from Dublin?
" it has just been acquired by a private equity company"
pr00ne is correct but of course that is EXACTLY teh probelm
The record of PE companies is that they:-
a) cut cost to the bone
b) run off all the experienced (= expensive & bolshy) staff
c) fail to invest in new products
d) load up the debt to pay very large dividend and "fees"
e) sell the best bits for cash
f) take the company public and exit ASAP
g) watch the suckers take a bath as the real situation becomes apparent
pr00ne is correct but of course that is EXACTLY teh probelm
The record of PE companies is that they:-
a) cut cost to the bone
b) run off all the experienced (= expensive & bolshy) staff
c) fail to invest in new products
d) load up the debt to pay very large dividend and "fees"
e) sell the best bits for cash
f) take the company public and exit ASAP
g) watch the suckers take a bath as the real situation becomes apparent
Pontius Navigator,
Because they are US domiciled companies who have set up European subsidiaries for tax (avoidance) purposes. Vodafone do something very similar.
Because they are US domiciled companies who have set up European subsidiaries for tax (avoidance) purposes. Vodafone do something very similar.
Asturias56,
Some certainly do, a lot certainly do, but many don't. The lot who have just bought Cobham seem a little different and are rather more long term. They have already announced UK investment and are looking to grow the business.
Some certainly do, a lot certainly do, but many don't. The lot who have just bought Cobham seem a little different and are rather more long term. They have already announced UK investment and are looking to grow the business.
I hope they do but the overall record is straight MBA strip/steal/burn