* Announcement comes two days before bid deadline
* Chemring shares fall to their lowest in over six years
Nov 7 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
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.