Takeover fight launched as defence firm Meggitt draws second American bidder

A US firm is seeking to gatecrash a £6.3bn takeover of Meggitt as American interest in British defence companies intensifies.

Transdigm has made a 900p-a-share “non-binding” offer for the Coventrybased defence contractor.

The offer is almost double the value at which Meggitt shares were trading before the company agreed an 800p-ashare deal with Parker-hannifin, another US firm, earlier this month.

Meggitt, whose board is led by Sir Nigel Rudd, makes brakes used on more than 70,000 civil and military aircraft worldwide. The Meggitt board reiterated its recommendation for the lower 800p approach from Parkerhannifin given that there is no certainty that the offer will be made firm.

The FTSE 250 company said it would need to assess whether the Transdigm offer provided similar assurances to the Government over security concerns and committed to funding the company’s pension schemes appropriately.

Transdigm ranks among one of the most acquisitive in the US defence sector, having bought around 60 companies since it floated in New York in 2006. It has a base in Marlow, Bucks, after acquiring an arm of Cobham that makes radios and antennae for the aerospace market for $965m last year.

Parker-hannifin, which also already has a base in the UK, has committed to keeping Meggitt’s headquarters in Coventry. Meggitt employs 9,000 people worldwide, with 2,300 in the UK. Any such commitments would only be valid for a year, with the exception of R&D, which would last for five.

Tom Williams, boss of Parker-hannifin, refused to rule out job cuts in the long run, pledging only that a “significant number would be protected”.