Howle Holdings launched a surprise hostile bid for Sheffield-based Brooke Industrial last week, expressing frustration at failing to agree a bid after four years of on-off talks.
Howle’s 3-for-1 all-paper offer values Brooke at £6.29m or 82.5p a share, a premium of 17.9% to the closing price of 70p the day before the bid was announced.
Howle chairman George Govan said: `If you ask some lassie to dance for four years but they never come to the party, you have to give up or do something different.’
Brooke’s only response was a stock exchange statement advising shareholders to take no action while it considered the bid.
The companies operate in similar markets – both have cutting tools and tungsten carbide component businesses. Brooke, which put out a profit warning in March, also has wires and springs activities.
Govan said he hoped to exploit numerous overlaps between the companies.