Burnfield rejects Fairey offer

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The Independent Online
Burnfield, the laser technology to pressure gauges group, said it had "no hesitation" in rejecting a hostile pounds 51.1m bid made yesterday by the rival engineer Fairey.

Brian McGowan, Burnfield chairman, said: "Fairey is offering a knockdown price for Burnfield and its potential." Fairey is offering one share for every four Burnfield shares, valuing each share in the target at 145.9p. Shares in Burnfield rose by 36p to 136p, while Fairey's eased 1.5p to 582p.

Fairey said its offer was conditional on shareholders voting down the pounds 24m acquisition for Ling Dynamic systems announced last week by Burnfield.

John Poulter, chief executive of Fairey, claimed that the Ling purchase would cut Burnfield's earnings in the next year. Burnfield said, however, that the Ling deal offered good potential, and urged shareholders to vote in favour of the acquisition at an extraordinary general meeting on 30 December.