Jefferies cut TI Fluid Systems price target to 200p, downgrades to 'hold'

(Sharecast News) - Jefferies downgraded its stance on TI Fluid Systems on Tuesday to 'hold' from 'buy' following the takeover proposal from ABC Technologies. "Given the likelihood of progression of ABC Technologies' proposed 200p per share offer for TIFS we move our price target to the offer price of 200p, and we downgrade our rating," it said. The price target was cut from 215p.

TI Fluid said earlier this month that it would be "minded to recommend" an improved takeover proposal from Canada's ABC Technologies at 200p a share, should a firm offer be made.

TI Fluid had already rejected offers of 165p a share, 188p a share and 195p a share.

The latest proposal, which was made on 10 October, represents a premium of about 53.4% to the closing share price on 21 August, which was the last business day prior to ABC Technologies submitting its first proposal to the group.

Under UK takeover rules, ABC now has until 8 November to either announce a firm intention to make an offer for TI Fluid Systems or walk away.

At 1530 GMT, the shares were down 0.3% at 175.80p.