CITY WHISPERS: Advent’s £5bn bonanza after Cobham sale and cannabis firm’s medical plans

The sale of another slice of Cobham means the private equity owners will have made more than £5bn from thrashing parts of the defense and aerospace group since the takeover.

A decent return on investment for US-based Advent International – which later divested another mid-capper, Ultra Electronics, after acquiring Cobham in a £4bn deal in 2019.

But while private equity predators may have popped the champagne, it has previously dragged the issue of foreign acquisitions back into the spotlight.

This was exactly the type of management style many in the defense industry and Westminster warned against when the buyout was being investigated.

The latest sale – to the French Thales – is automatically screened under the National Security & Investment Act, which was introduced in 2022.

According to Whispers’ most recent count, the government has used the legislation to block or intervene in just 16 deals. Still, 16 has to be better than nothing.

Government is annoyed by Great British Nuclear delay

There were more than a few eyerolls when the government delayed the launch of Great British Nuclear.

A swanky event at London’s Science Museum on Thursday was canceled due to “11th hour” talks between the Net Zero department and the Treasury, according to reports.

It was expected to set out plans for the industry body and how it will help the UK meet its climate targets. The launch may have been delayed for only a short time.

But apparently potential international attendees hope there is a good online link to watch remotely.

Some who were due to come last week are furious after struggling to rebook their flights or get a refund, industry insiders say, and would rather not recommit.

Baillie Gifford closes his British Smaller Companies fund

There was a mixed reaction in City last week when Baillie Gifford closed his British Smaller Companies fund. But for brokers at SP Angel, it was an opportunity to raise a complaint.

“While it might be considered rude to comment on the poor performance, Baillie Gifford’s policy of making analysts wait outside company meetings was also quite rude,” SP Angel said in an email. Ouch.

Oxford Cannabinoid Technologies may move into oncology

Things have gone pretty quiet at Oxford Cannabinoid Technologies (OCT) since a boardroom brawl that pitted a co-founder against the current management was resolved and resolved.

The group – backed by rapper Snoop Dogg through his venture capital fund Casa Verde – specializes in designing pain therapies using the non-psychoactive compounds of cannabis plants.

There are numerous treatments in the pipeline.

But Whispers hears that OCT is about to announce a move into another field: oncology.

Data suggests there is potential to create a cannabinoid-based drug that can apparently be taken as a tablet at home to treat solid cancer tumors. A lofty goal.