LONDON -(Dow Jones)- The U.K. Takeover Panel Tuesday ran out of patience over the ongoing takeover battle for commercial kitchen appliance maker Enodis PLC (LSE:ENO) ( ENO.LN), ordering an auction to take place on June 30 if the situation isn't resolved by Friday.
The British company is at the center of a takeover war between U.S.-based Manitowoc Co. (NYSE:MTW) (MTW) and Illinois Tool Works Inc. (NYSE:ITW) (ITW). Enodis (LSE:ENO) had accepted the most recent and highest bid on the table, Manitowoc's (NYSE:MTW) 294 pence-a-share offer, which valued the company at GBP1.08 billion.
However, June 9, Enodis (LSE:ENO) said Manitowoc (NYSE:MTW) had delayed posting offer documents to Enodis (LSE:ENO) shareholders, without giving a reason for the delay. The delay was sanctioned by the Takeover Panel.
But in Tuesday's statement, the Takeover Panel said Enodis (LSE:ENO) remains the center of a competitive takeover situation, and in order to achieve an orderly conclusion, there will be one-round auction taking place on June 30, as long as a competitive bidding situation remains in place at 1530 GMT on Friday.
Manitowoc (NYSE:MTW) and Illinois Tool Works (NYSE:ITW) are only allowed to make revised offers before Friday's deadline, unless a third party steps in with a new offer.
During the auction, the U.S. companies will be able to raise their bids only by 5 pence in cash more than the previous bid from the rival, until one company drops out.
At 1415 GMT, shares in Enodis (LSE:ENO) were trading down 1 pence, or 0.3%. at 316 pence. The stock has been trading above the Manitowoc (NYSE:MTW) offer price on hopes that another higher offer may emerge. The stock has more than doubled since the first offer was announced.
Enodis (LSE:ENO) has been a long-standing takeover target. Previous offers for the company from Manitowoc (NYSE:MTW) , U.S.-based Middleby Corp. (NASDAQ-NMS:MIDD) (MIDD) and U.K.-based Aga Foodservice PLC (AGA.LN) were all rejected or scuppered by regulatory issues.
It owns a portfolio of 30 brands and its range of foodservice products includes cooking equipment, refrigeration units, and ice and beverage dispensing equipment that are used in fast-food restaurants, institutions, grocery stores and supermarkets. It has manufacturing facilities in North America, Europe and Asia, and employs 6,800 workers.
JPMorgan Cazenove is acting as financial adviser to Manitowoc (NYSE:MTW) , and Rothschild is advising Enodis (LSE:ENO) .
Company Web site: www.enodis.com
-By Gabor Debreczeni, Dow Jones Newswires; 44-20-7842-9407; gabor.debreczeni@ dowjones.com
(END) Dow Jones Newswires 06-24-08 1128 Copyright (c) 2008 Dow Jones & Company, Inc.
