Sharks, vultures, asset-strippers: just a few of the names that have been applied to the likes of Parker Hannifin, the US company which is trying to take over UK aviation company Meggitt. It’s the latest in a spate of takeover attempts of UK engineering firms by US competitors and private equity firms. An alternative name for them would be astute businesses which can see the value in companies that dopey British pension fund managers are unable to spot.
If the takeover of UK firms is a problem or a scandal, British institutions are the real villains. They have bid down the values of these firms as they go chasing returns on US tech shares instead. Parker Hannifin has offered 800p a share for Meggitt. The market, by contrast, valued Meggitt at only 469p a share on Friday evening, before the takeover attempt was declared.
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