LONDON, July 26 (Reuters) - The UK government is closely
monitoring Cobham's takeover bid of British defence group Ultra
Electronics, a government spokesperson told Reuters.
Defence group Cobham Ltd made a $3.6 billion offer to buy
UK-based rival Ultra Electronics, Ultra said on Friday, adding
that it was considering recommending the bid to shareholders.
"The Government is aware of the proposed purchase of Ultra
Electronics Holding Plc by Cobham Limited. While this is a
commercial matter for the companies involved, we are closely
monitoring the transaction," a UK government spokesperson told
Reuters in an emailed statement.
Earlier on Monday, Sky News reported that UK Business
Secretary Kwarteng had ordered a probe into the deal.
Under the Enterprise Act 2002, the UK Government has the
power to intervene in mergers on public interest grounds,
including national security, media plurality and the stability
of the UK financial system.
(Reporting by Elizabeth Piper; writing by Abhinav Ramnarayan;
editing by Barbara Lewis)