Last week, Melrose vowed to return excess cash to shareholders, increase disposals and reduce its debt. JPMorgan Cazenove has priced the group’s energy and lifting equipment at more than $1.5 billion per unit, Financial Times reports.
Barclays analysts, however, remained cautious, saying that the firm “would be open to any realistic offers for any of all of Melrose’s business,” but spending in former FKI divisions “suggest…that further improvement is expected…and that therefore now may not be the best time to sell them,” according to Financial Times.
UBS downgraded its rating for Melrose last week from “buy” to “neutral” one day after the company posted its results from last year, which highlighted issues in the firm’s core departments. UBS said that if Melrose were to exclude its Elster business, core orders fell by 11 percent from the first half of last year to the second half, ShareCast reports.