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Meggitt receives second takeover bid

Meggitt is headquartered in Ansty Business Park in Coventry, England. (Meggitt)

Meggitt is headquartered in Ansty Business Park in Coventry, England. (Meggitt)

US-based TransDigm Group has made an unsolicited proposal to buy the United Kingdom's Meggitt plc for GBP7.03 billion (USD9.75 billion), potentially displacing a lower bid that Meggitt's board of directors had already endorsed, the two companies announced on 11 August.

Meggitt said it will continue reviewing TransDigm's “preliminary” 900 pence-per-share proposal to determine whether it would include commitments that are at least equivalent to those made in the earlier, more-detailed offer by US-based Parker Hannifin Corporation. In the meantime, Meggitt's board will continue to recommend the Parker bid in documents that will be sent to Meggitt shareholders the week of 16 August.

“The board of Meggitt believes Parker's offer continues to represent an attractive proposition for Meggitt's shareholders and for its broader stakeholders, including its employees, pension schemes, and customers, together with [the UK] government, for the long term,” Meggitt said.

Meggitt and Parker announced on 2 August that Meggitt's board had agreed to Parker's bid for 800 pence per share and a total of GBP6.25 billion. Parker said the two motion and control system providers could better serve their customers by combining their complementary portfolios.

Parker has offered to make several legally binding commitments to the UK government, including ensuring that Meggitt continues to meet its contractual obligations to the UK government; maintaining Meggitt's Coventry, England, headquarters; keeping Meggitt's research and development in the UK at least at current levels; and operating Meggitt's four divisions under the “Parker-Meggitt“ name. Parker also made commitments to Meggitt on pension funding.

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