Lone Star today said it had backed out from its bid to take over aerospace engineer Senior after the private equity firm’s fifth offer was rejected.
Earlier in the week, Senior said there was no basis for it to engage with Lone Star after the fund said its 200p per share offer could only be increased if a rival bid was made.
The final takeover bid, which equated to £838.8m, “fundamentally undervalues Senior and its future prospects” according to the aerospace firm.
Following the announcement, shares in Senior edged 0.1 per cent higher as markets opened.
After the offer came in, Senior chair Ian King said: “We view this final conditional proposal as highly opportunistic given the timing and the relative share price weakness, coming at a point where our end-markets are showing signs of recovery.
“Senior has been resilient through the pandemic and is well-positioned to emerge strongly as the recovery continues.”
Last month, Peel Hunt analysts said that it was unlikely that an offer would be accepted.
However, it added that there was a “window for a deal to be done” at 200p, which turned out to be Lone Star’s final offer price.