Meggitt jumps higher on Cobham merger report
Shares in defence and aerospace engineer Meggitt rose on Tuesday following a report in the Financial Times that a merger with Cobham might be on the cards.
Aerospace and Defence
11,666.72
17:14 01/11/24
1.99%
227.37
Cobham
164.50p
14:03 17/01/20
0.00%
0.00p
FTSE 100
8,177.15
16:39 01/11/24
n/a
n/a
FTSE 250
20,479.74
17:14 01/11/24
n/a
n/a
FTSE 350
4,508.38
17:14 01/11/24
n/a
n/a
FTSE All-Share
4,465.61
16:54 01/11/24
n/a
n/a
Meggitt
798.80p
16:52 12/09/22
0.00%
0.00p
Atif Latif, director of trading at Guardian Stockbrokers, said he sees the rationale of a tie-up between the two as a defence play.
“Both valuations have suffered alongside the drop in the oil price that has been negative for the sector. The valuations remain undemanding after the drop and trade under par versus the sector,” he said.
Latif said the drop in Meggitt shares of late makes this deal more plausible.
At 10:40, Meggitt shares were up 1.9% at 479.30p, while Cobham was 0.7% higher at 272.80p.