Defence technology group Cobham has called off discussions with Thrane & Thrane, the Danish communications group it has been in takeover talks with over the last 12 months.
Cobham proposed, on February 8th, buying Thrane & Thrane at 420 Danish krones per share in cash valuing the company at around DKK2,418m (£273m).
"Cobham's strategy is to build market leadership positions in its strategic business units by investing in technology, particularly with exposure to commercial market segments, and it has identified Thrane & Thrane as one such potential target," Cobham said.
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Thrane & Thrane provides communications solutions to four main market areas: aeronautical; land mobile; maritime; and systems. "Our customers vary from the Mediterranean fishermen spending weeks in a small fishing boat, the high profile journalist reporting from the hotspots of the world, to the armycommunications specialist or the Fortune 500 CEO crossing the Atlantic in his company jet," its website reads.
Cobham thinks that there would be significant benefits from a combination of its own SATCOM business with Thrane & Thrane.
However, the majority of the Danish group's board "felt unable to recommend [the] proposal" to its shareholders, meaning that Cobham has decided to withdraw. Nevertheless, Cobham said that it reserves the right to reconsider at any time.
Investors were clearly pleased with the decision on Monday, with shares finishing 4.9% higher on the day at 220.9p.
BC
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