US predator has its £862m final bid for aircraft and car parts maker Senior rejected
Takeover target: Senior supplies parts to jet engine manufacturer Rolls-Royce
Aircraft and car parts maker Senior declared victory after fighting off private equity giant Lone Star, who yesterday tabled its final £862million bid.
The board said the sweetened 200p per share proposal – the fifth made by the buyout firm so far – still undervalued the business.
Senior insists it has the resources to stand on its own two feet and there is no reason to engage with Lone Star. The private equity firm said it will only increase its offer further if rival bidders emerge.
But Senior chairman Ian King said yesterday: ‘The board believes we have a clear strategy that will maximise value for shareholders over the medium-term and, accordingly, is not able to recommend a sale of the business at 200p per share.’
Senior said it would be willing to engage with Lone Star or other potential suitors at a fair price.
It comes as a wave of private equity takeovers sweeps Britain.
But while the pandemic and Boeing’s 737 Max crisis has hit Senior and other aerospace suppliers hard, it has been selling non-core divisions and slashing jobs.
Yesterday, it said trading in the five months to May had been better than management expectations, as it prepared to report half-year results in August.
Overall sales were 15 per cent lower compared to the same period last year. Senior’s shares fell 9.9 per cent, or 16.4p, to 149.3p.