LONDON--Invesco Ltd. (IVZ), the fund manager that is the largest
shareholder in U.K. defense contractor Chemring Group PLC (CHG.LN),
has given "tacit support" to buyout giant Carlyle Group L.P.'s (CG)
approach to the company, the Sunday Times reports, without citing
sources.
Invesco controls nearly 30% of Chemring's shares and is crucial
to secure backing for Chemring to open its books for Carlyle to
perform due diligence on the company, clearing the way for a
possible deal worth 900 million pounds ($1.46 billion).
Chemring said last month it had received an approach from
Carlyle, which could lead to a takeover offer. On Friday the
companies said the U.K. Takeover Panel had agreed to extend an
earlier deadline for Carlyle to announce its intentions or walk
away.
The possibility that Chemring could be taken over by Carlyle
comes as a much larger U.K. defense group, BAE Systems PLC (BA.LN)
is in merger talks with European Aeronautic Space & Defence Co.
(EAD.FR) about a possible $49 billion tie-up.
Invesco didn't respond to a request for comment.
Full story: http://www.timesonline.co.uk
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