Information on Loughborough

Bid made for FKI

Posted on 05/02/2008
P. Klein

fki brush in Loughborough

Local Loughborough business FKI has been challenged.

FKI Plc own and operate the Brush Works in Loughborough.

Melrose Plc, a U.K. investment company, may bid £412M for local company FKI Plc, which is the second approach for the firm in a year.

Melrose has made a preliminary offer of 70 pence a share. The bid is 39 percent higher than FKIs closing price on Jan. 31, a day before Britains FKI announced an approach from an unidentified party.

FKI made an announcement on their website on 1st February 2007: “The Board of FKI plc notes the recent press speculation and movement in the Company’s share price and confirms that it has received an approach which may or may not lead to an offer being made for the Company. The Board would like to emphasise that the approach is very preliminary and therefore there is no certainty that any offer will be forthcoming.”

The offer comes as the manufacturer, stuck with £354M of debt, announced plans to sell off part of its business.

FKI shares have dropped dramatically over the last year falling from £1.14 per share to 47p. However by 11am today the share price had risen to 65p.

Period

Price

1 week

47.00p

1 month

56.00p

3 months

91.50p

6 months

109.75p

1 year

114.25p