FIRST TECHNOLOGY made gains as the short-lived battle for control of the crash test dummies maker looked to have drawn to a close.
The safety device engineering group revealed that it had recommended a £406 million counterbid from Honeywell, the American engineering conglomerate, that valued its shares at 385p, a 90 per cent premium on their price before the start of the offer period.
Honeywell’s offer prompted its rival bidder Danaher to say that it would not raise its existing 330p offer, made on Friday. Danaher’s bid to buy the company trumped Honeywell’s first offer, which valued the company at 275p a share.
Danaher had claimed the support of shareholders holding 18 per cent of the company and won the support of First Technology’s board. However, Morley Fund Management, the largest shareholder, with a 10.7 per cent stake, said that its support was conditional on Honeywell not returning with a higher offer by this Friday.
First Technology shares ended 22¼p higher at 380¼p.
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Trinity Mirror headed the mid-cap risers, putting on 34p to 590p as traders turned their attention to the possibility that Sir Victor Blank’s departure as chairman could clear the way for asset sales.
Housebuilders were in focus, with George Wimpey heading the line-up on renewed talk that it is ripe for a takeover. Its shares rose 27¼p to 518p, while Taylor Woodrow, up 19½p at 404½p, was singled out by traders as a probable buyer. Bellway, also considered a potential beneficiary of consolidation in the sector, ended 55p higher at £11.60.
Premier Farnell garnered a positive response to the appointment of Harriet Green, currently at Arrow Electronics, of the United States, as chief executive. The electronic components distributor has been without a permanent boss since July last year, when Sir Peter Gershon made his mark as the group’s new chairman by ousting John Hirst after seven years with the company.
Northern Foods gave up 2½p to 142¼p after Panmure Gordon suggested that the supermarket food maker’s profit margin target was unachievable and that it should cut its dividend. The broker lowered its target price from 135p to 125p.
Air Music & Media put on 0.87p to 3.12p on the back of an upbeat trading update. European Goldfields rose 6p to 153½p after updating investors on its Romania project.