** Engineers GKN & Rolls-Royce, Dairy Crest & HSBC among cos attracting buy-side as theytransform themselves or engage in M&A to augment growth
** Cheap financing for buyers of disposed assets -- may notbe as cheap in coming months e.g. BoE rate rise expected early2016, Fed this yr -- & limited organic growth (amid globaleconomy fears) spurring M&A (aerospace/defence key area)
** GKN bought Dutch aerospace supply firm Fokker (via 200mln stg placing) c.3 weeks ago, Premier AM's head of UK equitiesChris White started position in GKN just after & since increasedholdings
** Rolls, hit by run of profit warnings (shrinking westerndefence budgets & oil price squeezing customers in oil gas &marine sectors) subject to speculation of accelerated turnaroundplans/M&A amid activist stake buy
** Trevor Green, head of equities at Aviva Investors,recently bought into Rolls-Royce; new CEO Warren East has beenopen about the fact there's a lot to do & is "certainly theright man for the job", PM says
** PM also holds engineering turnaround specialist MelroseIndustries, which recently sold its utility meteringbusiness
** Dairy Crest set to demerge dairy operations (under UK CMAreview) & focus on branded foods; Premier AM's White, who liftedholdings in last c.3-4 mths, says if dairy stripped out, on PEof c.14x, cheap vs peers
** HSBC held by both PMs mentioned; co recentlysold its unprofitable Brazilian operations, part of a plan toshed underperforming business & reduce costs (RM: tricia.wright1.thomsonreuters.com@reuters.net)
