LONDON: Britain’s Novar Plc has recommended a £798mil takeover by diversified US manufacturer Honeywell International Inc, the industrial conglomerate said yesterday.
The Honeywell bid values each Novar share at 185p, a 28% premium to a hostile offer from investment vehicle Melrose Plc and also offers a second interim dividend of 6.6p per share in place of a final-year dividend.
Last month, Novar rejected the £625mil bid from Melrose, saying it undervalued the group.
Melrose declined to comment on whether it would raise its bid.
In a statement through its bankers JP Morgan, Honeywell said the offer provided a full cash exit for Novar shareholders while giving Honeywell an important asset for further European expansion.
“Honeywell believes Novar’s Intelligent Building Systems (IBS) unit will enhance its offering of security, fire and building controls products and services, particularly in the UK and Germany,” the company said in a statement. – Reuters
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