Melrose pulls its Charter bid

MELROSE, the industrial turnaround specialist, last night pulled out of the race to buy engineering group Charter International, which owns Renfrew-based fan maker Howden.

Charter had turned down two takeover approaches from Melrose before granting the firm access to its books following an improved £1.43 billion conditional offer. But Charter’s board recommended a rival £1.5bn offer from US pumps and valves manufacturer Colfax.

Melrose yesterday said that it recently completed due diligence and agreed terms with its financing banks.

But the company added: “In the current climate, Melrose is of the view it is not in its shareholders’ best interests.”

Charter’s shares closed up 14p at 868p ahead of the news.