April 1 (Reuters) - The field of suitors for British aerospace and defence supplier Senior Plc narrowed after private equity firm Arcline Investment Management dropped out of buyout talks on Wednesday
Arcline Exits Senior Plc Bid as Rival Buyout Talks in UK Defence Sector Persist
Developments in Senior Plc Buyout Negotiations
Arcline Withdraws from Senior Plc Acquisition Talks
April 1 (Reuters) - The field of suitors for British aerospace and defence supplier Senior Plc narrowed after private equity firm Arcline Investment Management dropped out of buyout talks on Wednesday, though negotiations with other bidders remained ongoing.
Senior Plc's Response and Market Reaction
Senior, whose shares are only marginally up as of 0815 GMT, declined to comment in response to a Reuters request.
Interest from American Private Equity Firms
Growing US Interest in UK Defence Companies
The firm is the latest in a list of UK companies that American PE firms are interested in taking over at a time when defence spending has significantly increased as geopolitical tensions flare up across the globe.
Senior Plc's Defence Sector Revenue
Senior, which caters to customers such as Lockheed Martin, attributes 16% of its revenue to defence.
Details on Arcline's Decision and UK Takeover Rules
Arcline's Lack of Explanation
Arcline did not elaborate on why it will not make an offer for the firm.
Takeover Restrictions Imposed by UK Rules
Under UK takeover rules, the firm is now prevented from making an approach for Senior for the next six months, except under some special circumstances.
Ongoing Buyout Talks with Other Bidders
Advent and Tinicum-Blackstone Consortium Negotiations
Senior, which rejected Advent's 1.14 billion pound ($18.57 billion) proposal in early in March, remains in talks with the PE firm as well as with the Tinicum-Blackstone consortium.
Exchange Rate Reference
($1 = 0.7539 pounds)
Reporting Credits
(Reporting by Prerna Bedi and Simone Lobo in Bengaluru; Editing by Janane Venkatraman)
