Nat Rothschild’s Volex has scrapped a takeover of smaller rival TT Electronics.
The AIM-listed components manufacturer said a £248.6million bid was rejected.
Rothschild, executive chairman of Volex, said he ‘will not proceed with an offer as it is now clear that the board of TT Electronics is not willing to recommend an offer at a valuation that is also acceptable to Volex’.
Volex is ‘resolutely disciplined in how it allocates capital,’ he added.
Deal’s off: Nat Rothschild, executive chairman of Volex, said the firm would not proceed with an offer for TT Electronics
TT noted the statement and said the board ‘continues to have confidence in the company’s medium-term financial framework’.
Volex had made two proposals, one implying a price of 129p for each TT Electronics share, and a second one offering 135.5p a share.
Shares in TT Electronics fell 8.9 per cent, or 10.5p, to 108p while Volex rose 5.8 per cent, or 16.5p, to 303p.
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