Scotland’s biggest engineer, Weir Group, last week deflected an unsolicited £600m takeover bid from US-based Flowserve.
A merger would have created the world’s largest pumps maker, but Glasgow-based Weir said the 300p-a-share approach ‘failed by a wide margin to reflect the true value of the group’. Analysts agreed, saying 350p was more realistic.
Sandy Morris of ABN Amro said this would value the shares at the level they were at five years ago. Flowserve is not thought to have the resources to make such an offer and City experts believe it will now retire from the fray.
Speculation about another bid continues, but Weir wants to remain independent and has recently made much of its expansion ambitions.
Duncan Whyte, a Scottish Power executive director, is to become Weir’s next chief executive. He takes over from Sir Ron Garrick, who has become chairman following the retirement of Lord Weir.