PE Firm Melrose Eyes $2.3B Buyout Of Gas Meter Co. Elster

Law360, New York (June 18, 2012, 3:41 PM EDT) -- British private equity firm Melrose PLC is in talks to take over gas meter manufacturer Elster Group SE in an all-cash deal worth $2.3 billion, the pair confirmed Monday after heavy weekend speculation.

The terms of the deal, which the parties stressed are not yet finalized, would place Elster's per-share value at $20.50, a 25 percent premium over the German company's Friday closing price. A purchase would be backed through a mix of new debt and a rights issue to Melrose's existing shareholders, according to a...
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