Charter 'explores demerger options' to avoid takeover
Engineering company Charter is considering a break-up of its core businesses in an attempt to stop a takeover, it has been reported.
Charter, which was subject to a second takeover bid from Warwickshire-based Melrose last week, has brought in business adviser Goldman Sachs to examine its options.
According to reports in The Sunday Times, the Dublin-based engineering company is exploring the option of a sale or demerger of one of its core businesses, Glasgow-based air and gas handling firm Howden.
The newspaper reports suggest a disposal would discourage future takeover talk.
On Friday, Charter rejected a buyout offer from industrial turnaround specialist Melrose, for the second time. An improved offer of £1.4bn was said by Charter to be "opportunistic" and "undervalued the company".
In a statement, Charter said: "Having reviewed Melrose's revised proposal and given Melrose's advisers the opportunity to provide certain important clarifications, the board of Charter continues to believe that Melrose's revised proposal is opportunistic and undervalues the company and its prospects."
