Morgan Crucible, founded in 1856 by five brothers from the Morgan family who specialised in importing items such as crucibles, is understood to have called off talks with SGL Carbon in the past few days.
SGL, which is based in Wiesbaden, is listed in its home country and in New York. Like Morgan Crucible, it makes materials for industrial and aerospace uses, but is worth less than half its British competitor, which had a market value of £804m at Friday’s close of trading.
Bankers at JP Morgan Cazenove are continuing to advise the Morgan Crucible board, led by chairman Lars Kylberg and chief executive Mark Robertshaw, on discussions with an alternative bidder.
The unnamed suitor is a private-equity house. It could be one of a number of firms, including DLJ, the buyout arm of Credit Suisse. Morgan Crucible declined to comment this weekend.
If an agreement is reached to snap up Morgan Crucible, it would cap an eventful few years for the company.
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The former chief executive, Ian Norris, is fighting charges in America relating to alleged price-fixing. He denies any wrong-doing.
Morgan Crucible is only just emerging from a long period of restructuring that was triggered by a sharp downturn in trading and almost led to the company’s collapse.
The firm is the latest in a string of British manufacturers to have been approached by foreign bidders in recent months.
Only last week, Enodis, which makes kitchen equipment for fast-food chains, saw off approaches from a smaller American rival, Middleby.