Rolls f Foden in Did
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ROLLS-ROYCE has failed in its second bid to take over Foden and "does not believe it will be in the interests of the shareholders to try again".
Figures released as CM went to press showed that RR had achieved acceptances for the E10.9 million offer from the owners of only 6.95 per cen the ordinary shares and per cent of the prefere: shares.
Fodens chief executive \ ham Foden said this week t he was "delighted" with result of the bid.
"We are very encoura, with the confirmation of confidence our sharehold have in us as an independ company," said Mr Foden.
He was sorry the comp; had been forced to fi Rolls-Royce over the bid, the company had to put interests of the sharehold and employees first.
Last week, Rolls-Royce t naging director David Plast told CM that he saw the fut of Foden as continuing a separate company with separate identity and separ financial arrangements.
"The company will v definitely not become a c tive market for our engin( said Mr Plastow. He ad( • that the Transport and Sal ed Staff Association at Foc had voted to go ahead with takeover.
In a letter to Foden sha holders from Rolls' merch, bankers, Lazards Rolls cla ed that Foden had twice bef approached RR with ideas the possibility of a merf "We do not understand thE fore why your Board is n not convinced of our ar, ient," the letter added.
knd Fodens' merchant bank-, County Bank, described le letter as an "absurd doculent". Rolls figures for the bid rere based on half-yearly rofit figures which gave a use impression of the situaon, "when an engineering 3mpany comes out with alf-year figures, they are Dund to be conservative," the ink asserted.
County Bank director John npey described the letter as aitpicking". Rolls were trying ) claim that Fodens had made a over-optimistic estimate of 7ofits and had come to that mclusion merely by doubling p the half-yearly figures, he rid.
But despite the fight over ie future of Fodens a Rolls atement, this week, said: We are pleased to learn that odens is to remain an impor.nt independent part of the ritish heavy truck industry."
And Mr Foden added: "Our ose and harmonious rela)nship with the Rolls-Royce .otors company as an engine ipplier is long-established id one which we are sure will reinstated quickly."
With the latest bid now wing failed, the Rolls offer, ken up by some shareholn.s, has lapsed. Rolls owned ) Foden shares before the test bid.