Cobham locks on to rival Ultra with £2.6bn takeover offer
The board of defence firm Ultra have this morning signalled their approval of a £2.6bn takeover bid from rival FTSE 250 company Cobham.
In a statement, the firm said that it had received a £35.00 per share non-binding offer from Dorset-headquartered Cobham, which it said was “at a value the Board would be minded to recommend to Ultra shareholders”.
Shares in Ultra, which makes electronic components for the defence industry, soared 33 per cent on the back of the announcement.
The offer is the latest in Advent-owned Cobham’s pursuit of its rival firm. Last month, it ambushed Ultra by announcing that it was mulling a takeover bid.
Back in June, it offered £28.00 per share for the firm, saying it wanted to create a “global defence champion” through the merger.
Ultra’s board said: “Having considered the Proposal, the Board has indicated to Cobham that it is at a value the Board would be minded to recommend to Ultra shareholders, subject to consideration and satisfactory resolution of other terms and arrangements, including the establishment of safeguards for the interests of Ultra’s stakeholder groups .
“In relation to this, Cobham has indicated to the Board that it is minded to offer the UK government appropriate undertakings in respect of national security.
“Accordingly, the Board will engage in discussions with Cobham to explore the Proposal in further detail.”