US predator urged to come clean over plans for Cobham

by Francesca Washtell

THE American private equity firm bidding for cobham has been urged to come clean over its plans for the British defence group.

Former cobham boss Gordon Page is sceptical about Advent International’s intentions and has slammed its strategy.

And Lady cobham, the widow of another former boss, Sir Michael cobham, who was the son of founder Sir Alan cobham, compared the proposed £4bn sale to the takeover of engineer GKN by Melrose last year.

That deal required commitments to the Government in order to be allowed through – and Melrose was criticised this year for plans to shut a GKN factory. Lady cobham (pictured) also blasted assurances from private equity companies such as Advent as ‘not worth the paper they are written on’.

Opposition is mounting to the 165p-per-share deal, with questions raised over the price of the offer, possible threats to the UK defence industry and a seeming lack of Government scrutiny.

Former Defence Secretary Michael Heseltine has warned that ‘no other country in the world’ would allow a sensitive takeover to be waved through without looking at it in detail. Now, former chief executive and chairman Page, who was at the company from 1992 to 2011, has raised concerns about Bostonbased Advent, which has said it plans to keep cobham’s headquarters in Wimborne, Dorset, continue spending on research and development and cut around 1pc of jobs.

But critics are sceptical because private equity companies often own a company for around five years and sell it on.

Page, 75, said: ‘I just don’t think Advent understands enough about the business. I’m sure they’re experts about the financial part but not the technology cobham produces. Advent needs to be more specific.’

He added: ‘My own wish would be that it wouldn’t happen at all to this type of buyer. I think this culture, this outlook, it’s a longterm commitment, a sort of longterm horizon. That’s not the culture of Advent.’

cobham ran into a number of financial difficulties between 2015 and 2017, but has steadied.

Lady cobham has been leading the opposition campaign against Advent’s takeover.

In letters to Defence Secretary Ben Wallace and Business Secretary Andrea Leadsom, she said: ‘I am concerned that assurances given by private equity companies are not worth the paper they are written on, as the recent closure of GKN’s manufacturing plants by Melrose testifies.’

Lady cobham and a number of other advocates are urging the Government to review the takeover.

cobham will need 75pc of votes at a meeting on September 16 to back the deal for it to go ahead.