DBAY Advisors, the largest shareholder in British engineering firm TT Electronics, has announced that it will not make a takeover offer for the company. The decision ends expectations of a possible bidding battle with Swiss electronics group Cicor. Following the news, shares of TT Electronics fell sharply by about 21 per cent in early trading.
DBAY, which owns a 24.5 per cent stake in TT Electronics, had said last week that it was considering a bid. However, the investment firm now says it will not proceed, even as it maintains that Cicor’s rival offer for the company is unattractive and plans to vote against it.
TT Electronics had previously rejected three unsolicited takeover proposals from DBAY, the most recent valuing the company at 130 pence per share. In contrast, Cicor has made a higher final offer of 150 pence per share in cash, with an alternative option that includes Cicor shares.
Neither TT Electronics nor Cicor has commented on the latest development. For now, DBAY’s withdrawal leaves Cicor as the only active bidder, while uncertainty continues over the future ownership of the British electronics company.