UK Small,Mid-Caps To Attract Buyers On Weak Pound-Fund Manager

21st Jul 2010 13:38

By Rachael Gormley Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Investors are set to take advantage from the effect of a weak sterling on U.K.-based international companies, manager of the BlackRock UK Special Situations Fund Richard Plackett said Wednesday, especially those interested in smaller companies. Plackett said that as takeover activity picks up, small and mid caps will continue to attract foreign buyers due to the weakness of sterling, adding that his own fund has benefited recently with the agreed bids for Chloride Group PLC (CHLD.LN), a maker of secure power systems, and BSS Group PLC (BTSM.LN). U.K-based Chloride recommended shareholders July 2 to accept a GBP997 million takeover offer from U.S. power and industrial-automation company Emerson Electric Co. (EMR) following the withdrawal of Swiss engineer ABB Ltd. (ABBN.VX) from a hard-fought bid battle. BSS Group, a specialist trades distributor, meanwhile received an agreed GBP557.6 million bid from builders merchant Travis Perkins PLC (TPK.LN) July 5. The BlackRock UK Special Situations Fund invests largely in small and mid cap companies and around 70% of the fund is invested in businesses that sell their products in emerging markets, such as software producer Aveva Group PLC (AVV.LN), industrial producer Spirax-Sarco Engineering PLC (SPX.LN) and equipment hire company Aggreko PLC (AGK.LN). -By Rachael Gormley, Dow Jones Newswires; 44-20-7842-9308; [email protected] (END) Dow Jones Newswires July 21, 2010 08:38 ET (12:38 GMT)