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Nat Rothschild’s Volex has ruled out an acquisition of smaller rival TT Electronics.
The AIM-listed components maker said a £248.6m bid was rejected.
Rothschild, Volex’s chief executive, said he “will not proceed with an offer because it is now clear that the board of directors of TT Electronics is not willing to recommend an offer at a valuation that is also acceptable to Volex.”
Volex is “resolutely disciplined in the way it allocates capital,” he added.
Deal done: Volex CEO Nat Rothschild said the company would not proceed with a bid for TT Electronics
TT noted the statement and said the board “remains confident in the company’s medium-term financial framework.”
Volex had made two proposals, one involving a price of 129 pence for each TT Electronics share and the second offering 135.5 pence per share.
Shares in TT Electronics fell 8.9 per cent, or 10.5 pence, to 108 pence, while Volex rose 5.8 per cent, or 16.5 pence, to 303 pence.
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