The London stock market faces “death by a thousand cuts” as two other FTSE 250 companies bow to foreign takeovers.
In another frenetic day of negotiations on the Square Mile, construction firm Tyman and music group Hipgnosis backed proposals that would see them bought out of the UK market.
This follows a series of acquisitions already this year with packaging group DS Smith, telecoms testing company Spirent Communications and transport company Wincanton among those that fell into the hands of foreign bidders.
Insurers Direct Line and High Street electricity retailer Currys have also been approached but have so far managed to fend off takeover interest.
And shares in boot maker Dr Martens rose 7.1 per cent, or 4.8p, to 72.1p yesterday after The Mail on Sunday revealed it is being circled by some of the biggest fashion companies. important in the world.
Shares in Hipgnosis, which owns the rights to catalogs ranging from Blondie (pictured) to Neil Young, rose 11.6%, or 10.7p, to 102.6p.
Tyman, which makes door and window handles and seals and helped renovate Grand Central station in New York, yesterday agreed to a 400 pence-a-share takeover by Texas-based Quanex Building Products. This values the London-listed company at £788m.
In addition to updating one of New York’s most famous train stations, Tyman has worked on Crossrail, as well as Spain’s Hotel Palacio Colomera and France’s Le Grenier des Arts.
If the acquisition goes ahead, Quanex will delist Tyman from the London stock exchange and abandon its head office in the capital.
Instead, it will push for a New York listing. Tyman shares soared 34 per cent, or 100.5p, to 396.5p.
And in yet another blow to the city, music label Hipgnosis found itself in the middle of a bidding war yesterday.
Shares in the company, which owns the rights to catalogs ranging from Blondie to Neil Young, rose 11.6 per cent, or 10.7 pence, to 102.6 pence after it backed a 100 pence per share offer from Blackstone.
The US private equity giant’s offer was higher than the 93 pence per share offer Hipgnosis backed last week from music rights rival Concord Chorus, which is backed by private equity group Apollo.
Hipgnosis, which allows investors to earn royalties every time a song to which it owns the rights is played, said it “would be wise” to recommend Blackstone’s new offer.
Russ Mould, investment director at investment platform AJ Bell, said: “While individually these deals may not have much impact, when you consider the sheer volume of companies being acquired by overseas buyers, the UK market is experiencing “one death per thousand.” cuts.’
There is growing concern in the City and Westminster that a lack of investment in UK shares has left them undervalued and vulnerable to foreign predators.
And some companies, including Betfair, which owns Paddy Power, construction supplier CRH and plumbing group Ferguson, are choosing to leave the London market and list elsewhere, such as New York.
Another cause for concern is the lack of companies joining the stock market through so-called initial public offerings.
