Howle drops Brooke bid after Somta deal

Shares in Sheffield toolmaker Brooke Industrial fell last week after a hostile bid from Gloucester rival Howle Holdings collapsed. As predicted in The Engineer, Howle withdrew its bid after Brooke completed its acquisition of South African toolmaker Somta. Howle chairman George Govan, who made a £6.29m all-paper hostile bid for Brooke two months ago, said […]

Shares in Sheffield toolmaker Brooke Industrial fell last week after a hostile bid from Gloucester rival Howle Holdings collapsed.

As predicted in The Engineer, Howle withdrew its bid after Brooke completed its acquisition of South African toolmaker Somta.

Howle chairman George Govan, who made a £6.29m all-paper hostile bid for Brooke two months ago, said that a Howle/Brooke get-together still made sense, but not with Somta. `Brooke has enough on its plate without buying another business 6,000 miles away,’ he said.

Brooke shares ended the week at 65.5p, down more than 10% from 72.5p. The sharp fall reflected sales by speculators who had hoped to make a profit on any successful takeover.

Govan said: `I am obviously disappointed but we will remain on the acquisitions trail.’