Shareholders in Cobham (COB) have overwhelmingly backed a £4billion takeover by US private equity firm Advent International. More than 93% of participating shareholders voted in favour of the controversial deal at a meeting in London today – surpassing the 75% threshold needed to pass the move. The takeover has stoked opposition, including from the family of the group’s founder Michael Cobham. Opponents of the takeover have urged the Government to intervene and slammed MPs for ignoring national security concerns and ‘trading away Britain’s future prosperity’. They argued that the takeover is being waved through at a time when the Government is distracted by Brexit. Although the deal has now been rubber stamped by investors, business secretary Andrea Leadsom still has the power to open an investigation or even halt the proposed transaction because of Cobham’s extensive military contracts.
Eddie Stobart Logistics (ESL) has issued a profit warning and said it could tap investors for more cash as its debts spiral. The haulage firm said full year profits will be ‘significantly below’ expectations. It claimed that delays on major projects, an ambitious budget and an overall ‘adverse performance’ hit earnings in the first half of the year. The profit warning comes just days after the company confirmed it has been approached about a takeover by private equity firm DBAY Advisors. It also follows the emergence of a multi-million pound black hole in its accounts, which forced the company to suspend its shares last month and prompted boss Alex Laffey to step down. Eddie Stobart said net debt at the end of May was higher than hoped as falling profits hit its balance sheet.
