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ALEX BRUMMER: Business Secretary should act over Ultra

Business ministers, reciting the creed of open markets, have a terrible habit of refusing to intervene in takeovers.  When forced by political pressure to obtain reassurances about national security, headquarters and jobs stipulations, these are often drawn up in a hurry and are riddled with holes.  This was the case when Melrose bought GKN and undertakings could easily be subverted. The break-up of Cobham by asset strippers Advent and sale of militarily sensitive flight refuelling technology to a US competitor is another case in point.  Taking an active interest : Business Secretary Kwasi Kwarteng is keeping an eye on the Ultra deal

ALEX BRUMMER: Stop the private equity feeding frenzy

Long shareholders in UK companies owe a debt of gratitude to broker Canaccord Genuity. It has run the numbers on the quoted universe and found there are 177 stocks with a market value below £1.5billion which have a free cash yield of 10 per cent, making them easy prey for private equity. Even more frightening, it has identified a large and quite frankly alarming list of larger FTSE outfits with values up to £10billion, which could be fodder for the sharks. It covers the waterfront, from high street firms Dixons and M&S to vital utilities such as British Gas owner Centrica. The names of the vulnerable reach the heart of creative Britain and include ITV and Bloomsbury.

ALEX BRUMMER: Stop the private equity feeding frenzy

ALEX BRUMMER: Stop the private equity feeding frenzy
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ALEX BRUMMER: John Laing rolled over too quickly for private equity

Among its tangible achievements in the UK are the second Severn crossing and some of the UK’s big motorway projects. In recent times, as public-private partnerships have found less favour in Whitehall, Laing has taken its engineering and project management skills overseas, working on projects in Australia and North America. With the Biden Administration aiming for a big upgrade of US infrastructure from bridges to airports and railways, the opportunities for John Laing skills could be considerable.  The overseas earnings capacity for the UK, as it looks to put its expertise to work globally, looks considerable. KKR’s infrastructure arm says nothing will change after the deal and the company founded in Carlisle in 1848 will remain rooted in Britain. 

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