Siemens says it has no intention to bid for Renishaw

Scientific instruments manufacturer Renishaw (LON: RSW) was boosted by press speculation that Siemens might bid for the company and the share price rose 100p to £43.50. However, after the market closed Siemens announced that it did not intend to table a bid for Renishaw.

The two founders and main shareholders are both more than 80 years old. Sir David McMurty owns 36.3% and Daniel Deer holds 16.6%.

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The two men put their shares up for sale in 2021 and that set off a formal sale process. They were keen that a buyer would not change the way the company is run and the spending on research and development. Siemens was mentioned as a possible buyer that that time.

A suitable buyer was not found, and the two men, who met when they worked at Rolls-Royce, said that they had no intention of selling shares following the ending of the sale process. They did recognise that they would need to think about what to do with their shareholdings over the medium-term.

The share price is around two-thirds of the level it was at the time of the formal sale process. Renishaw is valued at £3.17bn and it is a constituent of the FTSE 250 index. It is forecasts to make a pre-tax profit of £133.2m on revenues of £682m, with an increase in pre-tax profit to £157.7m next year.  

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