MONEY MATTERS
Page 88
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The Link-up Betwe
MEWS that the CHRYSLER CORPORATION is
offering to buy 30% of each holding of Ordinary Shares of ROOTES at a price of 24s. 6d. each and 50% of each holding of that company's "A" Ordinary shares at a price of 21s. each, brings to a head a series of rumours that such a bid was in the offing (Chrysler and B.M.C. have been mentioned) that have been flying around the market on and off for two years or more. The directors of Rootes are confident there will be no change of control; the new money (amounting to £15 m.) to be raised within the next 14 years will be raised in the same proportion of voting and " A " shares as now exists. Nevertheless, the City feels that the question mark overhanging Rootes Group now is whether Chrysler Corporation will eventually bid for the remaining twothirds of the equity capital; the Ordinary shares with votes.
The emergence of rumours to this effect would surprise no one. Nor does anyone expect greater heed to be taken of any denials than was taken of the denials of the bid rumours recently. The deal now announced requires official sanction both here and in America; Mr. Edward Heath has already welcomed the link-up. After dealings in Rootes shares had been suspended by the jobbers for a couple of hours initially, pending clarification of the agreement, the price a the Ordinary shares touched 17s. and the " A " shares 14s. 6d.
The net profit of MAIDSTONE AND DISTRICT MOTOR SERVICES for the year ending March 31 last amounted to £242,314. This compared with 1236,802 the previous year. The proposed payment of 74%, tax