Bodycote rejects takeover approach

A major UK engineering firm said today it had spurned a takeover approach worth £1 billion.

Bodycote International, which specialises in heat treatments and metallurgical coatings, described the proposal from Switzerland’s Sulzer as “unsolicited, conditional and unwelcome”.

It added the offer significantly undervalued the business and told investors that it had an attractive future as an independent company.

Sulzer said it had increased its proposal twice this month and that it was now offering a 41% premium to the Bodycote share price on the day prior to speculation surfacing in the market about a possible bid.

It said it was now considering its options after failing to engage UK based Bodycote in talks.