Carlyle drops bid for Filtronic

MOBILE and radio frequency components group Filtronic announced that US private equity group Carlyle has decided against making an offer for the company.

Carlyle announced in June it was considering its options for the Shipley-based company which has streamlined its operations after a turbulent few years.

In response to the announcement Filtronic put out a statement which said that trading in the first half of the year had been strong.

However the company said that trading in the second half of the year is expected to be weak thanks to the slowdown in capital investment in the telecom infrastructure market.

The company’s cash resources, after taking into account the payment of the second special dividend on November 24, stand at around £15m (20p a share).

Looking ahead the company pointed to the positive news that it had recently been selected by a major customer to develop products for its next generation radio.

Filtronic said the contract win reinforced the company’s leadership position in the market place.