Buzz over Rolls-Royce second Finnish bid is scotched

FILE - In this Nov. 13, 2010 photo provided by the Australian Transport Safety Bureau, shows an engine that failed on a Qantas A380 superjumbo is removed from the plane at Singapore Airport in Singapore. As many as half of the 80 Rolls-Royce engines that power the world's largest jetliner may have faulty parts at risk of oil leaks like the one that caused the fire and partial disintegration of a motor on a Qantas flight this month, the Australian national airline's chief executive said Thursday Nov. 18, 2010. *

(AP Photo/Australian Transport Safety Bureau

Mark Leftly21 January 2014

City sources have scotched reports that Westminster-based Rolls-Royce is close to another tilt at Finland’s Wartsila, just two weeks after a first set of takeover talks collapsed.

The aircraft-engine manufacturer is keen on Wartsila because of its strength in marine engineering, such as designing ships, which would give Rolls a more balanced business.

Wartsila also has a tasty UK presence in the form of 100-year-old marine and oil & gas specialist Hamworthy in Poole, Dorset.

But it is believed that Rolls is not, at the moment, working up a bid worth at least 9.9 billion (£8.2 billion) — or 50 for every Wartsila share — as suggested by Finland’s Helsingin Sanomat newspaper. Analysts at Bank of America Merrill Lynch have previously assessed that Rolls could afford to spend around £7.8 billion.

Rolls investors were certainly wary, if not weary, of the possibility of renewed talks, with shares down 0.64% to 1241p.

When news of previous talks leaked this month, Rolls rushed out a statement confirming these discussions had already collapsed, but there was no similar instant response in the first hours of trading today.

A Rolls spokesman declined to comment.

General Electric has confirmed its leasing and financing arm has bought 40 Boeing aeroplanes worth around $4 billion (£2.4 billion).