Another UK firm has become the target at the centre of a bidding war between two larger US peers.
Earlier this month, the telecoms testing service provider Spirent Communications agreed to be sold to US communications firm Viavi.
The NewYork listed firm said it would buy Spirent for 172.5p per share in cash.
But now Keysight Technologies Inc, another stateside business listed on the New York Stock Exchange, has gatecrashed the bid, offering 201.5 p per share. The new offer valued Spirent at £1.15bn.
Spirent said the acquisition represents a “superior proposition for Spirent shareholders relative to the Viavi Offer.”
A statement read: “The Spirent directors consider that the acquisition represents a superior proposition for Spirent shareholders relative to the Viavi offer, with the acquisition value representing an increase of 26.5 pence per Spirent share relative to the Viavi offer.
“Accordingly, the Spirent directors have unanimously withdrawn their recommendation of the Viavi offer and intend to adjourn the Viavi offer shareholder meetings. A separate announcement will be made by Spirent in this regard.”
Shares in Spirent Communications soared by 10 per cent this morning following the news.
Earlier this week, another UK firm became the centre of a takeover battle when International Paper of the US put in a rival offer to buy London-listed DS Smith. The latter had been in talks to merge with Mondi, its London-listed peer.
Last year, 38 firms either completed deals or waived them through. The number of companies listed on the London Stock Exchange has now cratered to around 1,900 from over 3,250 in 2008.