US private equity group Advent International Corporation has bid GBP4 billion (USD5 billion) to acquire UK defence and aerospace group Cobham.
Cobham’s board has unanimously backed the bid, which, at GBP0.165 per share, represents a premium of 34% over the company’s closing price on the UK London Stock Exchange (LSE) of GBP0.123 on 24 July.
Cobham chief executive office David Lockwood said, “This offer reflects the potential for future growth and improving performance, and is an endorsement of our turnaround strategy.”
In addition to the backing of Cobham directors, the Advent bid has attracted the support of shareholder Artemis Investment Management, which holds 5% of the company’s stock.
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