Cobham asks defence secretary to block deal citing security issues

· The founders of British defence firm Cobham has requested the government to mediate in the 4 billion pound worth takeover of the company by Advent International.

· Lady Cobham expresses uncertainty on the assurances raised by Advent.

Nadine Cobham, the founding member of Cobham plc has reportedly mentioned to Defence Secretary Ben Wallace and business secretary Andrea Leadsom addressing them the need to hold the takeover deal of the company aiming that it could intimidate the national interest.

As per credible sources, Lady Cobham has warned the officials that the sale could put the national security at risk and weaken the defence sector in the United Kingdom.

Reportedly, in the letter, Lady Cobham has mentioned that she was doubtful about the assurances provided by the management of the Advent International on its retention of British skills and jobs. The founding family has been claimed to own about 1.5% of the Financial Times Stock Exchange 250 Company’s shares.

It has been claimed that the Ministry of Defence contracts make around 5% of the firm’s business.

A source familiar with the knowledge of the matter claimed that the British government is looking into the matter and is monitoring the deal closely.

Advent’s tender for Cobham, reportedly comes less than 1 and half years after the engineering firm-GKN was acquired in an intimidating takeover by Melrose Industries.

Cobham’s board of directors has collectively financed the takeover proposal, which needs to secure over 75% shareholder agreement in order to pass.

It has been reported that a few investors have reached out against the bid, including the firm’s largest investor Silchester International Investors, which controls an 11.83% holding, and has quoted the offer as non-compelling.

Speculation has it that other investing companies are looking forward to propose challenging offers for the company.

Cobham has not been available to comment on the issue.

Cobham plc, headquartered in United Kingdom is considered to be one of the largest defence firms in the world. It is a pioneer in providing solutions to the most challenging problems around the globe with respect to technology.

Source credit: https://www.cityam.com/cobham-founding-family-says-takeover-against-national-interest/