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Last Updated: Monday, 13 December, 2004, 08:46 GMT
Honeywell offers 1.2bn for Novar
Cheque book
Novar's interest include cheque book printing
UK mini-conglomerate Novar has unveiled an 1.2bn ($2.3bn) bid from Honeywell of the US, a month on from rejecting another offer from Melrose.

The board of Novar, which has interests in electronics, aluminium and printing cheque books, is backing the offer.

Industrial conglomerate Honeywell is offering 798m or 1.85 per share for each Novar share, with another 331m for preference shares and debt.

The value is well above the 625m at which Melrose's offer was valued.

Honeywell's bid - which includes a second interim dividend of 6.6 pence per share in place of a final year dividend - effectively offers a 28% premium to Novar's shareholders over the bid from Melrose.

Last month, Novar rejected Melrose's offer, saying it undervalued the group.

Melrose declined to comment whether it would raise its bid.

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