Meggitt posts Parker scheme after chairman talks of 'binding committments'

Aerospace and defence engineer Meggitt pressed ahead with the agreed takeover from US peer Parker Hannifin on Monday, despite the prospect of a rival bid.

The FTSE 250 company published offer documents for the 800p-per-share deal it had agreed with Parker on Monday morning, confirming that the scheme was expected to become effective in the third quarter of 2022.

It did note that it received a “preliminary, non-binding” approach from another US aerospace firm, TransDigm, last week, over a possible 900p-a-share offer for Meggitt.

“The panel will announce the deadline by which TransDigm must clarify its intentions in relation to Meggitt,” the company’s board said as it released the Parker scheme document.

It came after Meggitt’s chairman said over the weekend that the UK government needed to be ready to block any takeover of the firm if a suitor could not give “binding commitments” on jobs and investment.

Sir Nigel Rudd told the Sunday Times that a new owner would need to give both the company and Westminster its guarantee that research and development spending would be maintained, and that its headquarters would remain in Coventry.

The chairman did not name any particular suitor in the fight for Meggitt, but told the newspaper that if any bidder was attempting to take the company on price alone, the government would need to intervene.

“It’s the government’s job to look after national interests - I’ve always believed that,” Sir Nigel said.

“It’s more difficult for the chairman of a public company to do that, because we have a fiduciary duty.”

At 0932 BST, shares in Meggitt were down 0.37% at 816p.