Melrose takeover bid turned down
An "opportunistic" bid from buyout company Melrose to acquire Charter has been rejected. Melrose, which has a base in Warwickshire, was turned down in its £1.3bn quest to buy the Dublin-headquartered company.
Charter, which owns several engineering businesses, said the £1.3bn offer significantly undervalued the company.
Melrose had offered 780 pence per share for Charter. This represented a premium of 30 per cent over the closing share price on the day prior to the approach, but below Charter's share prices at 12.30pm yesterday (30 June), which rose 8 per cent.
Melrose specialises in acquiring underperforming industrial businesses.
In a statement yesterday, Charter said: "The board of Charter reviewed the proposal with its advisers and rejected it. The offer is opportunistic and substantially undervalues the company and its prospects."
