GEC Plc – which last year withdrew its nominal penny a share bid for Ferranti International Plc after taking a close look at the books – looks set to snap up some more of Ferranti’s business after all. Ferranti’s receivers are negotiating to sell its defence and simulation operations to GEC, which will thus be […]
GEC Plc – which last year withdrew its nominal penny a share bid for Ferranti International Plc after taking a close look at the books – looks set to snap up some more of Ferranti’s business after all. Ferranti’s receivers are negotiating to sell its defence and simulation operations to GEC, which will thus be able to take on the business without having to assume UKP150m of debts. The receivers, Arthur Andersen partners John Talbot and Murdoch McKillop, have not finalised the deal, but have agreed in principle to acquire two Ferranti units: Defence Systems Integration, which manages and supplies ground-based naval and airborne installations, and Simulation & Training, which supplies simulation systems. Arthur Andersen hopes to conclude the deal during April, and is negotiating separately to sell off other units of the business. These comprise the company’s civil electronics business, its component manufacturing business which manufactures components for fuses, mines and power supplies – and its defence satellite business. GEC’s 1993 bid valued the company at only UKP10m – but that was when it looked as if it would have to pay off Ferranti’s UKP150m of debt. The value of the proposed deal has not been disclosed. GEC has beaten off competition from a management team that wanted to buy all five of the bankrupt company’s divisions; this team is still negotiating to buy Ferranti’s civil electronics business.
