* Meggitt gets possible 900p/share offer from TransDigm
* Shares hit fresh record high of 846p
* Company continues to back Parker-Hannifin offer
(Adds background, share moves of TransDigm and Parker)
By Yadarisa Shabong and Pushkala Aripaka
Aug 11 (Reuters) - A U.S. bidding battle could be brewing
for UK aerospace engineer Meggitt, which has been
approached by TransDigm over a possible 7.03 billion
pound ($9.74 billion) offer, days after accepting a lower bid
from Parker-Hannifin.
Meggitt, a supplier of aerospace components including
wheels and brakes for military fighters, announced TransDigm's
overture on Wednesday, saying the possible offer of 900 pence
per share from the U.S. player was preliminary and non-binding.
Nonetheless, that topped an 800 pence per share proposal
from Parker last week. Meggitt said it continued to back
Parker's 6.3 billion pound proposal, but said it would also
review TransDigm's potential offer.
News of the approach from Ohio-based TransDigm, which makes
aircraft components and systems used in commercial and military
aircraft, sent shares of London-listed Meggitt to a fresh record
high of 846 pence before closing at 830 pence.
Meggitt shares, which lost nearly 30% in value last year,
have gained 77% since the Parker deal was announced last week.
"Meggitt believes Parker's offer continues to represent an
attractive proposition for Meggitt's shareholders and for its
broader stakeholders," said the company, based in Coventry,
central England.
TransDigm's plans for Meggitt and the potential impact on
the company's employees, pension schemes and customers along
with the British government and other regulatory bodies would be
considered carefully, the British firm added.
Meggitt employs over 9,000 people in 14 countries across the
defence, aerospace and energy sectors.
PARKER'S COMMITMENTS
Parker, which is also based in Ohio, and operates in
industrial and aerospace markets, has made a series of
commitments to the British government on jobs and security.
Analysts have said that it was unlikely that the government
would block Meggitt's deal with Parker, given the suitor's
proposed safeguards.
U.S.-listed shares of Parker were down 1.2%, while TransDigm
was marginally up by 1627 GMT.
TransDigm's move marks the latest interest from a U.S.
company for a British defence group. Cobham, which was bought by
U.S. private equity firm Advent last year, made a $3.6 billion
offer to buy UK-based rival Ultra Electronics last
month, for instance.
The Ultra proposal has attracted the attention https://www.reuters.com/article/britain-ma-cobham-idUSL1N2P21N4
of the British government.
Takeovers for British companies hit a 14-year high by value
in the first seven months of 2021, driven by relatively cheap
valuations due in part to the pandemic and Brexit.
UK drugmaker Vectura is in the middle of a takeover
battle between New York-based tobacco giant Philip Morris and
Washington-based private equity firm Carlyle.
Global M&A hit $3.6 trillion so far this year, an all-time
year-to-date high, with the United States driving activity,
according to data provider Refinitiv https://thesource.refinitiv.com/thesource/getfile/index/41afdcdb-6615-4026-baa8-906de1767bfd.
($1 = 0.7214 pounds)
(Reporting by Pushkala Aripaka and Yadarisa Shabong in
Bengaluru, Editing by Sherry Jacob-Phillips and Pravin Char)
