Essen, Germany — (METERING.COM) — June 19, 2012 – Elster Group has confirmed that it is in discussions with the British business improvement company Melrose PLC regarding a possible acquisition.
According to a statement from Elster, Melrose is currently conducting due diligence and has indicated that it is in the process of putting in place firm financing. In turn, the Administrative Board of Elster is in the process of evaluating whether the proposal is in the best interest of Elster and its stakeholders.
Last week the Wall Street Journal reported that Elster Group could fetch more than $2 billion.
Melrose’s strategy is to buy businesses that are underperforming, to improve them and then sell them on.