Just five miles separate the headquarters of Dorset’s two big defence and aerospace firms. But the gulf between Meggitt and Cobham is a lot wider, as last week showed.
Cobham asked investors for another £500m of cash to repair its flimsy balance sheet after a debt-fuelled acquisition spree. By contrast, shares in Meggitt climbed 16% after it predicted growing sales and unveiled a sweeping review of operations.
Meggitt is starting to look like a changed company. It is 16 months since the maker of aircraft brakes and engine de-icing gear last warned on profits. Lurking in the background has been an investor better known for its aggressive activist tactics. Hedge fund tycoon Paul Singer’s Elliott Advisors first emerged on the shareholder register last August with