Canadians eye $4.5bn swoop

ONEX and the Canada Pension Plan Investment Board are considering a $4.5 billion takeover bid for UK car parts maker Tomkins as the weak pound encourages two more North American investors to snap up assets.

The possible takeover - Tomkins said in a statement that it had received a proposal from the consortium - sent the company's shares up 63.9p, or 27.8 per cent, at the close to 294.2p, valuing Tomkins at about 2.6bn.

The stock hit a high of 314p, its highest point since 2006 but below the 325p cash offer being considered by the potential buyers.

Gerald Schwartz, chief executive of Onex, Canada's biggest private equity firm, said in May that he expected the current economic cycle to yield attractive investment opportunities for Onex.