Meggitt Soars on $8.8 Billion Purchase by Parker-Hannifin
- Buyout would be biggest ever for U.S. motion-control giant
- Massive premium makes it harder for rival to jump in
Source: PRNewswire
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Parker-Hannifin Corp., the U.S. maker of industrial motion-control systems, agreed to buy Meggitt Plc for 6.3 billion pounds ($8.8 billion) in cash to strengthen its hand in a rebounding aerospace industry.
Shares of Meggitt surged the most on record after the 170-year-old company said its board would recommend the offer at 800 pence per share, 71% above Friday’s closing price. The massive premium will make it harder for a rival to jump in and snatch the Coventry, England-based target, after a string of U.S. buyouts of British aerospace and defense firms.