ERF shares rise sharply
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• The share price of ERF (Holdings) climbed steeply last week, prompting some speculation that a take-over bid may be in the offing.
Some observers thought that the Hestair group may be a buyer, but Hestair chairman, David Hargreaves, vehemently denies this. "I can think of no reason why we should wish to buy ERF! The sector in which it operates is absolutely not one in which we are interested," he says.
ERF financial director, John Hobbs, attributes the steep rise in the price of ERF shares, 21.11 a share when CM went to press compared with a low of 40p in January, to the favourable comments of City analysts following the recent publication of the company's 1985 results. These revealed that pre-tax profits had risen to 21.25 million from a loss of 20.5 million in 1984.
Hobbs says he is unaware of any take-over bid. "We know of nothing, and our brokers know of nothing," he says. While he generally welcomes improving stock market confidence in his company, he says, "I would far sooner see the price rise steadily than in such a rush. We are pleased with our progress, but we still think we have a long way to go before we would be attractive to any predator."