UNDATED, Oct 12: Chemring Group Plc said U.S. private equity company Carlyle Group has been granted another extension to the ‘put up or shut up’ deadline to hammer out an offer for the defence equipment maker.
The UK takeover panel has extended until Nov. 9 the deadline for Carlyle to table a firm bid for Chemring or walk away. The deadline was to expire on Friday.
Chemring, which makes flares, equipment to detect improvised explosive devices and mechanisms used in ejection seats, said on Aug. 17 that it had received a highly preliminary expression of interest from Carlyle.
Carlyle asked last month for an extension to the deadline to make a firm bid for Chemring.
Defence companies are coping with budget cuts in the United States and Europe as governments tighten their belts in an effort to rein in deficits.
With the collapse of merger talks between defence industry giants BAE Systems Plc and Airbus parent company EADS,the focus is likely to shift to smaller deals.
Chemring shares closed at 335.3 pence on Thursday on the London Stock Exchange. The shares, which spiked on Aug. 17 on investor enthusiasm over a deal, gave up most of those gains after a profit warning from the company raised fears that Carlyle might walk away.
(AGENCIES)
Trending Now
E-Paper
Follow our WhatsApp channel