Melrose granted more time to finalise Charter bid

WARWICKSHIRE-based engineering turnaround specialist Melrose has been given more time in its bid to secure the acquisition of welding and gas handling group Charter International.

The Takeover Panel has agreed to extend the deadline by which the company has to submit a formal offer for the business.

Last month the panel ruled Melrose had until September 6 to either announce a firm offer for Charter or rule itself out of the transaction.

Following representations made by the advisors to Charter, and having consulted with the advisors to Melrose, the Panel Executive has now ruled that the deadline will be extended to September 21.

However, it has stipulated that no further extension will be granted, except with the consent of the Panel Executive.

The panel said each of the parties had accepted its ruling.

The battle for control of the firm took another twist yesterday when US-based Colfax Corporation formally declared it was in talks with the Charter board to acquire the business.

Colfax is keen to take on the business in order to support growth opportunities in its sector.

Earlier this month Melrose announced it was increasing its original offer for Charter. Melrose’s previous offer valued the company at 850p per share on the assumption that that no dividends would be declared or paid.

The revised offer raises the stakes by offer by 18p per share.