Schroders urges Charter to open its books to Melrose
Richard Buxton, head of equities for Schroders - Charter's second-largest shareholder - has written to its chairman, Lars Emilson, urging him to engage with Melrose over its 1.4 billion takeover approach.
The move came just days after Melrose, which specialises in buying what it believes to be under-performing industrial businesses and selling them on after restructuring, urged Charter to allow it access to its books.
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Hide AdIt said it would consider improving its proposed 840p-a-share offer if information was found which demonstrated that it has materially undervalued Charter.
Charter, parent company of Renfrew-based engineering firm Howden, has rejected two potential offers from Melrose and said it is exploring its options.
The letter from Buxton has also warned that it would vote against any defensive "fire sales" of assets such as industrial fan business Howden, which is seeing strong growth and currently has a record order book.
"We want to participate in the growth of Howden over the next five years. We would vote against any efforts to sell it," said Buxton.
Charter yesterday declined to comment on the Schroders' letter, but in an interview last week Emilson said if a "fair value" bid was put forward the board would engage with Melrose.
Coincidentally, Buxton had gone public with his views on the Dana takeover situation after KNOC had also made its second approach to the Scottish firm.
At the time, Schroders was the largest shareholder in the company, which eventually succumbed to a bid from the South Korean firm.
Shares in Charter closed down 1.5p yesterday at 798.5p.