A bid battle is in prospect at engineering support services minnow Mount Engineering, as a US business stepped in to top a £16.4m agreed offer from a UK rival.
American electrical products maker Copper Industries is offering £19.2m, or 82p a share, for Mount, which makes adaptors for oil, gas and petrochemical companies. Last week Aim-listed Redhall unveiled a 70p a share offer for Mount, as part of its strategy to expand in the international energy markets.
Redhall fell 12.5p to 139.5p on the news, as analysts suggested it could return with a higher offer. Mount edged up above the Cooper bid price for that very reason, adding 6.5p to 84p. Mike Foster at Fairfax said:
Cooper Industries has the balance sheet to pay for Mount Engineering. Redhall could well be tempted to come back with a higher offer and such an approach would be financially viable. Cooper Industries has the deeper pockets. Operationally, this is a bigger move for Cooper Industries and, though initial due diligence has been completed, there is a possibility that further due diligence might be required and the Mount directors, who recommended the initial Redhall bid, may find Redhall to be a safer or at least more recognisable parent.
