Thursday, 9 September 2010
Bye Bye UK engingeering
However, this is not how foreigners see it. They see fantastic companies like Tomkins and Chloride and want to buy in. In fact merger and acquisitions in this sector are all the rage. Hopefully this will lead to a re-rating of shares and so less foreign take-over activity.
Now, this is not to say we Capitalists are against foreign take-overs per se. It's a market, they want to give shareholders money and they can then invest that elsewhere or start again with new businesses. Also the foreigners sometimes find it ain't as easy as it looks and you can overpay, check out DP World with their P&O ports acquisition.
But there is a market here for cheap take-outs of some of our best companies, which of course presents itself as a good opportunity for some stake building of your own in anticipation of this. After Chloride though, I am more at a loss as this is not my sector, any insight from the readership?