UK manufacturer Cobham has raised £106 million ($170 million) in a share placing, and is likely to spend half of it on more takeover bids. Cobham has spent more than £100 million this year on buying eight businesses and says it will use the placement to reduce its debt load. Another acquisition is imminent, chief executive Allan Cook announced before the placing opened.
Although keeping debts down would make Cobham financially healthier, investors are confident in Cook's strategy. The company's stock has risen steadily since the offering, which was rapidly sold out. The next likely acquisition target, if Cobham follows its earlier examples, will be a smaller defence specialist, bought for a few tens of mill- ions of pounds, with a heavy presence in the USA.
Source: Flight International
