MARKET REPORT: TI Fluid soars after rival’s fifth takeover bid

Shares in auto components maker TI Fluid Systems soared to their highest level in more than two years as it looked set to become the latest London-listed company to be acquired by a foreign bidder.

The Oxford-based company, which makes fluid systems for companies including Aston Martin, Porsche, Land Rover and Fiat, said it received a fifth acquisition proposal from Canadian rival ABC Technologies worth 200 pence per share, or $994 million. pounds sterling.

The board said it was “willing” to recommend such an offer to shareholders who had rejected four previous offers worth between 165 pence per share, or £820 million, and 195 pence per share, or £969 million.

ABC Tech, which is backed by private equity giant Apollo, has until November 8 to submit a firm bid for TI Fluid.

Shares in TI Fluid, which traded at 255 pence per share in 2017, rose 19.5 per cent, or 29.6 pence, to 181.8 pence.

It was the highest close since August 2022, but well below the 2021 peak of 327p, which valued the company at £1.6bn.

A number of London-listed companies have succumbed to foreign takeovers this year, including cybersecurity firm Darktrace and logistics group Wincanton.

Shareholders in US packaging giant International Paper yesterday approved its £5.8bn takeover of FTSE 100 rival DS Smith (up 0.6 per cent, or 2.6p, to 470p).

Shareholders of broker Hargreaves Lansdown also backed its £5.4bn takeover by a consortium of CVC Capital Partners, Nordic Capital and Abu Dhabi Investment Authority.

Hargreaves shares rose 0.1 per cent, or 1p, to 1,086p.

The FTSE 100 gained 0.5 per cent, or 39.01 points, to 8,292.66 and the FTSE 250 added 0.3 per cent, or 52.26 points, to 20,817.19 in a subdued session for markets as China’s plans to revive the world’s second-largest economy failed.

“The Chinese finance ministry’s presentation over the weekend was a little disappointing in the sense that it didn’t deliver the big numbers that some investors were expecting,” said Richard Flax, chief investment officer at wealth manager Moneyfarm.

Among blue-chip stocks, low-cost airline easyJet gained 1.3 per cent, or 6.6 pence, to 502.2 pence after appointing Jan De Raeymaeker as its chief financial officer.

He held the same position at the Belgian railway group Lineas. Bovis Homes owner Vistry added 4.4 per cent, or 40.5p, to 963.5p after falling 30 per cent last week following a profit surprise warning.

Bunzl also rose (up 2.4 per cent to 84 pence to 3,550 pence) after an upgrade from analysts at investment bank JP Morgan.

Shares of the company, which supplies everyday products such as toilet paper, disposable cups and helmets, have almost tripled in value from their Covid-19 low.

GSK rose 1 per cent, or 14.5 pence, to 1,494.5 pence following positive trial results for its Depemokimab treatment for chronic rhinosinusitis with nasal polyps.

The drug is seen as a potential blockbuster and could generate sales of up to £3bn a year.

Nasal polyps are growths in the nose or sinuses. Symptoms include a stuffy or runny nose, loss of smell, and headaches.