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Paul Singer Benedicte Gravrand, Opalesque Geneva:

Activist hedge fund firm Elliott Management has acquired a 5.2% economic interest in Meggitt, a UK aerospace components engineering firm, through a contract-for-difference which Elliott has been gathering since January. This stake makes Elliott one of Meggitt’s five largest shareholders.

Some analysts and consultants have long seen aerospace suppliers as ripe for consolidation and the fall in sterling’s value since June’s Brexit referendum could make UK companies particularly attractive to overseas buyers, the Financial Times comments.

Elliott has been ramping up its activity in Europe, the paper says. Last month, it increased its stake in Poundland, a UK retailer, after the latter agreed to be bought by Steinhoff, a South African retail group, and instigated an investor rebellion in the during talks of a takeover of SABMiller, a UK brewer, by Anheuser-Bush inBev, a brewer headquartered in Belgium.

Last week Meggitt reported a plunge in pre-tax profits, which decreased by 60% to £46.6m ($60.5m) in the first half of the year. It was compounded by sterling’......................

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