* Deal conditional on undertaking from Elster's top shareholder
June 18 (Reuters) - British buyout group Melrose Plc is in talks to buy Germany's utility meter maker Elster Group SE for $2.3 billion, the two companies said on Monday.
Melrose, which buys underperforming manufacturing businesses and turns them around before selling them, could offer $20.50 per Elster's American Depository Share, a 25 percent premium to the German company's closing price on Friday.
Melrose, however, said it would not go ahead with the acquisition without a recommendation from Elster's board or an undertaking from Elster's largest shareholder, Rembrandt Holdings.
Rembrandt, which has a 62 percent stake in Elster, is owned by private equity firm CVC Capital Parnters.
Melrose's announcement comes nearly a year after the company walked away from toolmaker Charter International in the face of a higher offer from U.S. company Colfax Group.
Shares in Melrose closed at 382.5 on Friday on the London Stock Exchange.
(Reporting by Abhishek Takle in Bangalore; Editing by Don Sebastian) Keywords: ELSTERGROUP OFFER/
(email@example.com; within UK +44 20 7542 1810; outside UK +91 80 4135 6102; Reuters Messaging: firstname.lastname@example.org)
COPYRIGHT Copyright Thomson Reuters 2012. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Datafeed and UK data supplied by NETbuilder and Interactive Data.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk!
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.