(Alliance News) - Signature Aviation PLC said Monday it has told Blackstone it "would currently be minded to recommend" a firm takeover offer at the latest price proposed by US private equity firm.
On Thursday last week, the London-based aviation services provider confirmed it is in talks with Blackstone Infrastructure Advisors LLC and Blackstone Core Equity Management Associates LLC for a possible cash takeover offer of USD5.17 per share, about GBP3.83.
This is a 42% premium to Signature's closing price last Wednesday of 269.20 pence and would value the entire FTSE 250 company at GBP3.17 billion. The stock was up 1.1% on Monday at 373.10p, having jumped 39% on Thursday.
Signature said last week it also had received an indicative proposal from Global Infrastructure Partners for a takeover but had rejected this on Thursday as it was lower than Blackstone's offer.
Signature on Monday said the USD5.17 tentative offer was the sixth proposal it had received from Blackstone since February.
Signature said talks with Blackstone continue. There is no certainty that a formal offer will be made by Blackstone, it said, and it will make a further announcement when appropriate. Signature shareholders should take no action in the meantime, the company said.
By Tom Waite; thomaslwaite@alliancenews.com
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