Insider Media Limited

Leamington Spa-headquartered Cooper Safety has thrown a curveball into what looked like a done-deal between Mount Engineering and engineering support services company, Redhall. Mount Engineering chief executive David Stanham has told Insider his company is assessing a potential rival takeover bid worth 78p per share from security systems manufacturer Cooper Safety.

Last week, Wakefield-based engineering support services business Redhall Group told the Stock Exchange of its intention to buy Mount for £16.42m in a deal valuing each Mount share at 70p.

York-based Mount Engineering has subsidiaries in Aldridge and Darlaston.

With Redhall executive chairman David Jackson and his Mount opposite number Alan McClue hailing the benefits of the Redhall acquisition, the deal looked set to complete.

Redhall said that Mount’s board had confirmed its offer was reasonable and had recommended acceptance to its shareholders.

However, Cooper Safety's interest, which Stanham said was not the product of earlier negotiation, has complicated the picture.

"Coopers are a customer of ours, in some ways, so I guess we're not particularly surprised," said Stanham.

"It hasn't been discussed or negotiated and at this time it's an offer which has now come onto the table."

"Redhall are aware of the situation, they have been advised, and they will be considering their position," he added.

"At the end of the day it is all about achieving the best opportunity for the Mount shareholders."

In its latest accounts, Mount reported pre-tax profit of £1.19m for the six months to 30 June based on revenue of £4.63m.

Leamington Spa-headquartered Cooper Safety is a UK subsidiary of Cooper Industries. The business has said it would need to carry out satisfactory due diligence on Mount in order to firm up its offer.