Melrose chasing German meter firm
Engineering buy-out firm Melrose has confirmed speculation that it is in discussions to buy German group Elster.
Engineering buy-out firm Melrose has confirmed speculation that it is in discussions to buy German group Elster.
Reports said the deal could be worth over $2bn, but the firm is so far keeping the terms of any deal to itself.
However, Melrose did say that any transaction would be funded through a combination of new debt and a fully underwritten rights issue to it's existing shareholders.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Elster is listed on the New York Stock Exchange and currently has a market capitalisation of $1.9bn.
The provider of gas, electricity and water meters generated revenues of $1.87bn in 2011.
"Elster agreed to due diligence which is currently on-going, and Melrose has indicated that it would not proceed with the transaction without a recommendation from the board of Elster and a hard irrevocable undertaking from Elster's largest shareholder, Rembrandt Holdings S.A., which is owned by funds advised by CVC Capital Partners," Melrose announced.
"The board of Melrose will only proceed with the transaction if it meets Melrose's acquisition criteria, including the terms on which financing for the transaction can be raised," the company added.
"This will include, but not be limited to, the Melrose share price at the time of announcement."
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Will “Liberation Day” strike again?
Donald Trump’s 90-day tariff pause comes to an end on 9 July. Can we expect further market turmoil?
-
Israel claims victory in the '12-day war' with Iran
Donald Trump may have announced a ceasefire in the 12-day war between Israel and Iran, but what comes next depends on what happens internally in Iran