Colt (COLT) could be pulled from the race before it's even out of the gate. Majority shareholder Fidelity's bid has come just as the troubled telecom services group nears completion of its workforce restructuring programme.
Management thinks the financial services titan's final offer - which values Colt's shares at a 34 per cent premium to their 12-month average share price - doesn't reflect the group's revitalised prospects. But Fidelity won't cede its stake before the end of 2016, effectively ruling out a counter offer. Colt's directors think some shareholders may find the deal's terms acceptable - especially given Fidelity's refusal to budge - and have therefore refrained from making a recommendation.
Colt continues to suffer from regulatory price cuts and tepid trading in Europe. Sales fell in all four of its divisions in the quarter ended March, but recently acquired peer KVH Asia and restructuring gains drove total constant-currency cash profit up 2 per cent.
