David Brown accepts pounds 195m US bid
Saturday 05 September 1998
The bid, which values David Brown shares at 290p, comes just a week after the group admitted it was in talks with a potential bidder. The shares closed at 279.5p, up 36p.
Textron, which makes Bell helicopters and Cessna light aircraft, said it would integrate David Brown into its Fluid and Power division. Most of David Brown's 3,000 staff are likely to keep their jobs as the businesses barely overlap.
Chris Cook, the chairman of David Brown, said the company had agreed to the bid after deciding it was the best way to build up a global position in its markets. "As the world changes it is becoming increasingly important for our business to have global reach," he said. "But we had used up our capacity for debt and I can't use paper for acquisitions."
Like many smaller engineering stocks, David Brown's shares have been hit by the strong pound and concern about a global economic downturn. Floated at 170p in April 1993, the shares touched an all-time low of 162.5p last month.
Lewis Campbell, the president and chief executive of Textron, said the deal offered a "strong, global platform" and "new, key locations to Textron's global manufacturing presence".
Mr Cook said Textron was likely to continue developing the businesses. Textron is in the process of selling its financial division for $4bn (pounds 2.4bn) and is planning to invest the proceeds in its industrial operations.
Mr Cook and Chris Brown, the chief executive, have irrevocably accepted the bid on behalf of their joint 7.3 per cent holding. Henderson Investors and AMP Asset Management, which control 22.5 per cent, have also accepted the offer.
- 1 Sabina Altynbekova, the girl branded 'too good looking' for volleyball, says social media obsession with her is a 'bit much'
- 2 Disney heiress Abigail disowns her share of family profits in West Bank company
- 3 The secret report that helps Israel hide facts
- 4 Israel's propaganda machine is finally starting to misfire
- 5 'Hello mum, this is going to be hard for you to read ...'
Sally Farmiloe dead: Howards' Way actress, and former mistress of Jeffrey Archer, dies aged 60
Justin Bieber posts Instagram photo of Orlando Bloom crying after fight 'over Miranda Kerr'
Sabina Altynbekova, the girl branded 'too good looking' for volleyball, says social media obsession with her is a 'bit much'
Disney heiress Abigail disowns her share of family profits in West Bank company
Australian model Robyn Lawley stages naked protest against huge coal mine seven times the size of Sydney Harbour
The secret report that helps Israel hide facts
Land for gas: Merkel and Putin discussed secret deal could end Ukraine crisis
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
A day in the life of Vladimir Putin: The dictator in his labyrinth
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
- < Previous
- Next >
iJobs Money & Business
£20000 - £24000 per annum: Harrington Starr: A leading provider of web based m...
£28000 - £32000 per annum: Ashdown Group: Secretary (Sales Team Support) - Mat...
Competitive (DOE): Guru Careers: We are looking for an Assistant Management Ac...
£600 - £700 per day + competitive: Orgtel: Senior Investment Accounting Change...