UTC talks tough on Kidde bid

AMERICAN conglomerate United Technologies' 165p-a-share offer to buy fire protection business Kidde could still collapse as the negotiations enter their final stages this week.

Kidde announced on Thursday that UTC had sweetened its offer by 5p a share to value the company at £1.39bn and that it would be opening the books to allow the American firm to carry out due diligence.

Though the markets received this as a sign that a deal was imminent, Kidde shareholders are believed to be holding out for 170p and could still reject UTC's offer.

The Takeover Panel has given UTC until Thursday either to make a firm offer or walk away.

UTC will spend the next few days trying to convince Kidde and its shareholders that the weakness of the dollar has had a major impact on its bid.