One of our long term holdings in the fund has confirmed that they are in discussions with another company which may lead to a takeover offer. Elster is a smart meter company which manufactures gas, electricity and water meters and has strong market positions in their industry. The UK company Melrose is reported to be considering whether to make an offer for the company, and there are rumoured to be other companies potentially offering competing approaches. Takeover approaches like this one are an indicator of high levels of confidence by the acquiring company which contrasts sharply with investors’ worries about the economy and possible breakup of the euro. Also in our fund, German health company Fresenius is acquiring the hospital operator Rhoen-Klinikum, and US dialysis service provider Davita is acquiring HealthCare Partners.
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