Kidde pours cold water over approach

Shares in FTSE-listed Kidde climbed more than 17% today after the fire equipment group said it had knocked back a takeover approach.

The Slough-based company told investors that an unnamed third party recently expressed interest in making an offer.

In a statement, Kidde said: “The board has rejected the proposal made and no further proposal has been received.”

Analysts named Chubb owner United Technologies as the most likely suitor, while German engineering giant Siemens was also thought to be in the frame.

Arbuthnot analyst Michael Blogg said a financial buyer was unlikely as Kidde was not in distress and a successful bid would have to be pitched at around 185p a share, which would value the firm at £1.56bn (€2.3bn).

“Any decent-sized company in this industry is going to have to look very carefully (at making an offer) because they won’t want to see Kidde going to one of their competitors,” he said.

Kidde provides fire and safety equipment to three key sectors, including aerospace, residential and commercial and heavy industry.

It makes products ranging from extinguishers, fire blankets and smoke alarms to industrial fire engines, military bridges and closed circuit security cameras.

The group, which employs 9,000 staff worldwide, revealed earlier this year that its profits rose 26.5% to £86.5m (€125.3m) during 2003.