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A•E•C.

27th February 1948
Page 28
Page 28, 27th February 1948 — A•E•C.
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Which of the following most accurately describes the problem?

Offers to Buy Crossley AN offer to purchase the shares of Crossley Motors, Ltd., has been made by the Associated Equipment Co., Ltd., described as the second largest producer of heavy vehicles in this country. It is intended that the separate identity of the Crossley concern shall be preserved, and it is proposed that Sir Kenneth Irwin Crossley, chairman of Crossley Motors, Ltd., and Mr. A. W Hubble, managing director. be appointed to the A.E.C. board.

The Crossley directors "are of dpinion that -the larger and more varied activities of the A.E.C. should make an association with it progressively advantageous to the business of Crossley Motors, as well as to its employees." Marked advantages are expected to accrue to each company by the exchange of designs, avoidance of duplication, of models, centralized purchasing and saving in overhead expenditure.

A.E.C. has offered to exchange all Crossley shares on the basis of one fl unit of stock for every five fully paid shares of 4s. each in Crossley Motors. Ltd. The Crossley concern has an issued capital of £300,000.

The offer is conditional upon its being accepted by the holders of at least 90 per cent. of the Crossley *26

shares, or such less proportion as A.E.C. may agree to accept, and upon the requisite resolution being passed at a general meeting of A.E.C. on April 5.

If the offer be accepted, Crossley Motors. Ltd., will declare an interim dividend of 7i per cent., and A.E.C. will take over the Crossley shares without the benefit of that dividend.


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