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CALOR COMPLAINS

17th November 1988
Page 30
Page 30, 17th November 1988 — CALOR COMPLAINS
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Which of the following most accurately describes the problem?

I should like to comment on the article "Calor to pull out of Esso contract" on your headline pages (CM 13 October), As no contract had been agreed, it is hard to understand how Calor Transport could have "pulled out" or "withdrawn". Surely, in the normal process of commercial negotiation, companies are not bound until a contract is agreed?

Similarly, in paragraph one, you refer to Calor "complaining" that it was unable to reach a satisfactory agreement. We were not complaining, but merely stating a fact of life that we had been unable to reach a satisfactory contractual arrangement with Esso. Negotiation is an essential part of everyday life for commercial companies — only some negotiations end in agreement.

In paragraph two your reference to "the eleventh-hour withdrawal comes only two weeks before . . ." is incorrect and is pure speculation.

As neither Calor Transport nor, to my certain knowledge, Esso has made any comment beyond a simple "official" statement, I find it hard to understand statements like "Commercial Motor understands that the Calor deal is off because the proposed contract is too tightly drawn for the company" and "sources close to the deal say that Calor is unhappy with the potential for profit . ."

We were not being deliberately unhelpful when we made a very short statement. The facts were simple and straight forward and the detailed reasons for the two companies not proceeding further were commercially confidential.

I do appreciate that it is of interest to your readers to know what goes on behind the scenes, but it is not always in the best interests of the parties involved.

PE Taylor,

General Manager, Calor Transport, Slough, Buckinghamshire.

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People: Taylor
Locations: Slough

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