Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Charter Considering Sweetened $2.3 Billion Bid From Melrose

July 14 (Bloomberg) -- Charter International Plc, the British maker of welding equipment, said it’s considering a sweetened takeover approach from Melrose Plc that values the business at about 1.4 billion pounds ($2.3 billion).

Melrose, the U.K. investment firm run by a former team at industrial company Wassall Plc, increased its cash-and-share bid to 840 pence, Charter said in a statement today. That’s 37 percent higher than its pre-approach closing price, and compares with an initial proposal of 780 pence made on June 29.

The approach comes as the welding and automation-equipment maker is in a state of flux after the sudden departure of Chief Executive Officer Michael Foster in June. The company, which is searching for a new CEO, on June 20 signaled full-year profit will be below earlier forecasts and announced a fresh wave of cost cutting.

“They are not as hostile, they don’t seem to reject it outright this time, so it obviously has a better chance of succeeding,” said Jo Reedman, an analyst at Singer Capital Markets Ltd., which is reviewing its Charter rating.

Charter urged shareholders to await further advice from the board and added that the proposal is conditional on financing and due diligence.

To contact the reporter on this story: Andrew Noel in London at anoel@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.