July 26, 2019 / 6:14 AM / 6 months ago

Cobham's biggest shareholder says Advent offer for company not 'compelling'

LONDON (Reuters) - The biggest investor in defense company Cobham COB.L, Silchester International Investors, said late Thursday that it did not consider a $5 billion offer for the company from private equity firm Advent International as ‘compelling’.

Silchester, which owns 11.8% of Cobham, said the company had a strong balance sheet that could be improved further, possibly through the sale of its Australian business.

The London-based fund also called on Cobham’s board to “seek and respond” to other potential bidders, and suggested the company would have strategic value to a buyer with significant North American interests.

For overseas buyers, the current weakness of the pound provided “an excellent opportunity”, it added.

On Thursday, Advent offered to pay 4 billion pounds for Cobham, known for its pioneering air-to-air refueling technology. The price of 165 pence a share represented a 50% premium to the three-month average price.

Reporting by Simon Jessop; Editing by Rachel Armstrong

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