Meggitt gets unsolicited takeover approach from TransDigm, shares surge

Meggitt said there can be no certainty that any firm offer will be made by TransDigm nor as to the terms.

The company announced last week that it had agreed to be bought by US rival Parker-Hannifin for £6.3bn. Under the terms of the deal, Meggitt shareholders would receive 800p per share.

The transaction also includes certain binding commitments that will ensure that Meggitt continues to meet its contractual obligations in respect of goods and services supplied to the UK government, and maintain its headquarters in the UK, among other things.

Meggitt said it will review the TransDigm offer but that its directors continue to recommend the offer by Parker, as it represents an "attractive proposition" for shareholders and broader stakeholders, "including its employees, pension schemes and customers, together with HM Government, for the long-term".

At 1540 BST, the shares were up 17% at 836.20p.

CMC Markets analyst Michael Hewson said: "Meggitt is a key defence contractor for the UK military, and supplies a range of systems including thermal and weapon scoring systems, as well fire protection and control systems and avionics, and while the new proposed bid is being considered by the board, management don’t appear to be resiling from recommending the original Parker Hannifin bid."