I H Seddon deal hits snag but distributors
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seem happy by CM reporter AN UNEXPECTED obstacle to International Harvester's bid for SeddonAtkinson was raised this week by Tony Allen, former Atkinson chairman and son of the Preston company's founder. He and business economist, A. G. Horsnail, object to the loan stock terms of the 1H bid. They say the offer — which values every £100 of Seddon convertible stock at £82.61 — is inadequate because the 2,000 holders of private loan stock will have to pay capital gains tax of as much as £20 per £100.
The hurdle raised by Allen and Horsnail surprised City opinion which had pre dieted that there were likely to be no major obstacles in the way of IH's £10 m bid. However, it is understood that the two men themselves control only a small percentage of the outstanding shares OH Canada, a subsidiary of IH, already owns 10.4 per cent).
Only days before the intervention more than 70 Seddon-Atkinson distributors met two directors of 1H at a private dinner party in Manchester's Midland Hotel. Even though the offer does not close until next Friday the two Americans apparently outlined in general terms what future the distributors have with Seddon-Atkinson products.
One person present at the secret meeting told CM that the distributors were "more than happy" with what the IH men had to say. He predicted an "exciting future" for Seddon if all went as planned. It is understood that the IH men admitted that they had burnt their fingers when they tried to build their own trucks at Doncaster; this time they would be leaving well alone and letting Seddon management have full control.
Meanwhile, S'eddonAtkinson's two Londonbased vehicle distribution companies, Seddo Atkinson (London) Ltd Hendon and Seddo Atkinson (Southern) Ltd Balham, have both be sold. This is in line wi group policy that it should future have no interests distributing its ov • products. The Hend. company has been pi chased by the Ryland Groi and re)-named Rylat Group (London) Ltd, wh the Southern company h been renamed Nightinga Engineering Co Ltd ai become part of the Wadha Stringer Group. It is undc stood that both compani will continue to hand Seddon-Atkinson product