Melrose puts the squeeze on
Engineering buy-out firm Melrose said it had failed to persuade all the shareholders in German takeover target Elster Group to hand over their stock and would now force them to sell.
Engineering buy-out firm Melrose said it had failed to persuade all the shareholders in German takeover target Elster Group to hand over their stock and would now force them to sell.
However, it said the "squeeze-out" process would delay the takeover by a number of months due to regulatory issues in Germany.
Melrose said it had secured 99.62% of the total share capital of Elster, which included 17.4m ordinary shares and 42.8m American depository shares (ADS) of the firm.
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
Under the previously announced agreed offer, Elster shareholders will receive $82 per ordinary share and ADS holders will receive $20.50 for every ADS.
This was a premium of 48.6% to the price of an Elster ADS on June 11th, the last business day prior to press speculation that Rembrandt Holdings, Elster's majority shareholder, was considering a sale of its Elster holding.
"As previously announced by Melrose at the end of the initial offering period, having acquired over 95% of the total share capital of Elster in the initial tender offer, Melrose intends to implement a 'squeeze-out' of the remaining Elster shareholders," the company said.
"Such squeeze-out process will be subject to German law and is expected to take a number of months to complete once initiated," it added.
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.
-
5 alternatives to Reeves’ inheritance tax raid on rural Britain as families face ‘splitting up or selling’ farms
Inheritance tax limits are now so low they attack small working family farms rather than just going after tax loopholes, one Cotswolds farmer has said
-
High earners at risk of £65k retirement shock
High earners could face some of the biggest pension shortfalls when they retire, as the cost of maintaining an expensive lifestyle could erode their retirement savings