Melrose makes 780p-a-share approach to Charter

29th Jun 2011 12:54

Engineering conglomerate Melrose has been in discussions with rival Charter about making a possible 780p-a-share offer for the company, it confirmed today.The offer values Charter, which on Monday announced the departure of its chief executive after last week warning that profits will be lower than expected due tough trading at its welding unit, at about £1.3bn."Any offer for Charter by Melrose, if made, would consist of a mix of cash and share consideration," Melrose. "However, Melrose would like to emphasise that there can be no certainty that an offer for Charter will be forthcoming."In a short statement in response to Melrose's announcement, Charter said: 'The board will meet to consider this unsolicited approach and a further announcement will be made in due course."Shares in Charter were up by 27.15% at 782p at 1.05pm, while Melrose's were up by 3.13% at 355.5p.