Offers to Buy State Companies
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FROM OUR POLITICAL CORRESPONDENT IT seems certain that, after its vesting I day on January 1, the Transport Holding Company will get down to an examination of the offers made for the three State-owned chassis and body manufacturing companies.
A number of inquiries quickly followed Mr. Marples' declaration that he would let them go for a good offer.
The Minister's instructions to the Holding Company are that it must reject all offers which do not reach the reserve set upon them by independent valuers.
These firms are Bristol Commercial Vehicles Ltd., Eastern Coach Works Ltd., and Star Bodies (B.T.C.) Ltd.
In a few days' time, when the B.T.C. virtually leaves the scene and the new transport boards are vested, Sir Philip Wafter will take over as the first parttime chairman of the Transport Holding Company, at £4,000 a year.
To aid him and his fellow-directors, Sir Philip will have Sir Reginald Wilson, former chairman of British Railways' London Midland Region, as full-time director at £7,500 a year.
. It the -Company wants to plough back any profits it makes it will have to make out a strong case, because the Act stipulates that surpluses can be taken by the Exchequei.
Within the Holding Company will be grouped a medley of activities, including those of . B.R.S., the State body and chassis builders, the Tilling and Scottish omnibuses, Thomas Cook and Son, Pickfords, some shipping companies and a host of sizeable provincial bus operators.
The Transport Minister will be able to give the Board of the Holding Company " directions " from time to time, but it will be charged by the Act to exercise wide-ranging freedom to hold, manage, deal in and generally manipulate the securities it holds in all:these companies.
There are still, however, some shackles on what it can do; notably it must secure that any wholly Owned subsidiary of the Holding Company does not engage in manufacture or production, except for the Company, another Board, or a wholly owned subsidiary of another Board, for use in their business. TheHolding Company will not be able to borrow money in the open market, except as a temporary measure. Loans will come mainly from the Treasury, and annual reports and accounts of the Company will be passed to the Minister and made public.