Takeover by an over-leveraged wannabe private equity crew is not the best outcome for Meggitt
Are there any more Ohio-based aerospace and defence companies planning to bid for Meggitt of Coventry? The tally is now two, with Cleveland-based TransDigm pitching interest at 900p a share, which would beat the 800p-a-pop, or £6.3bn, last week from local rival Parker Hannifin.
But would it beat it on non-financial measures? The key point about Parker’s offer was that it arrived with a few “legally binding commitments to HM government”, covering jobs and investment in the UK. Those pledges were far too airy, as argued here last week, because most expired after 12 months, but at least they provided a basis for negotiation with the business secretary, Kwasi Kwarteng.
