Hawker Group Rejects BTR Bid

The industrial conglomerate BTR PLC launched a takeover bid today for Hawker Siddeley Group PLC that values the British engineering company at $2.6 billion (1.5 billion pounds).

Hawker Siddeley’s board of directors quickly rejected the offer as inadequate.

BTR said it was offering cash and stock worth $1.27 (741 pence) a share for Hawker Siddeley stock, a premium of almost 16% above Thursday’s closing price on the London Stock Exchange.

BTR said its bid was aimed at unlocking profit potential at Hawker Siddeley, which specializes in electric motors, instruments, controls, aerospace components, and engineering.

Hawker Siddeley rose $2.05 (119 pence) a share, to $13.05 (759 pence), in afternoon trading.

Hawker Siddeley said its board felt that BTR’s offer “is inadequate and strongly recommends shareholders to take no action in respect of the offer.”