At close yesterday, shares were up 3.8% to 380.75p. By 12pm GMT today, IMI’s shares were up a further 1.12% to 385p. IMI has a market capitalisation of approximately £1.22bn (€1.64bn).
Despite the climb, the share price is still significantly down on its June 2007 high of 637p. As a result, private equity would likely be able to finance a bid, especially if financial buyers partner to form a bidding consortium.
The UK engineering sector has been attracting private equity interest of late, with diversified engineering group
At that time, FKI had a market cap of approximately £750m, but a recent profit warning has seen its value shrink to £325m. FKI closed yesterday at 70.5p, just above the 70p Melrose put forward as a possible offer at the beginning of February. By 12pm GMT today, however, FKI had climbed a further 3.9% to 73.25p.