UPDATE 1-Carlyle pulls out of takeover talks with UK's Chemring
* Announcement comes two days before bid deadline
* Chemring shares fall to their lowest in over six years
Nov 7 (Reuters) - Carlyle Group said on Wednesday it won't make an offer for British defence equipment maker Chemring Group, two days ahead of the deadline for the private equity company to make a firm bid or walk away.
Carlyle did not give a reason for ending the talks but its announcement followed two profit warnings from Chemring in less than three months as a result of contract and production delays and technical problems with one of its products.
Chemring shares tumbled 16 percent to 226.9 pence on the London Stock Exchange, their lowest in more than six years.
The shares dropped 9 percent on Oct. 23 after the company replaced Chief Executive David Price with Mark Papworth, widely regarded as a turnaround specialist.
The appointment indicated Chemring was preparing for life as an independent company, raising doubts about the Carlyle deal going ahead.
Carlyle could not be immediately reached for comment and Chemring declined to comment.
Chemring, a maker of flares and explosive device detectors, disclosed in August that it had received a preliminary expression of interest from Carlyle.
Carlyle originally had until Sept. 14 to make a firm bid but that deadline was extended twice after the UK Takeover Panel agreed to give the companies more time to hammer out a deal.
- Search planes find no sign of missing airliner at spot located by China |
- Missing jet may have strayed to west, Malaysia military says |
- Malaysia failing credibility test as flight confusion deepens
- White House tried to mediate dispute between Senate, CIA panel: source
- Vietnam search fruitless at site where China satellite detected suspected plane debris - witness