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Tibbett will 'fight off' Unigate

23rd November 1995
Page 10
Page 10, 23rd November 1995 — Tibbett will 'fight off' Unigate
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by Karen Miles • A declaration from cash-rich Unigate that it wants to buy further into the distribution sector has brought a sharp response from Tibbett & Britten, the company thought to be most at risk from a predator. In a powerful defence of his company's independence, Tibbett chairman John Harvey made it clear that he would fight any approach from the food manufacturing and distribution giant. "The company is not for sale and anyone wanting to buy it would have to start by persuading management...we would not welcome it," he says. Harvey's comment follows last week's announcement by Unigate chief executive Ross Buckland that the group plans to raise £329m by selling off its 29% stake in Dutch baby food company Nutricia. Buckland added that the group, which earned more than £1bn in the six months to 30 September, would spend the money on expanding its food and distribution activities and would probably want to acquire a European company with a turnover of over £50m. Unigate already owns distribution company Wincanton and has been talking to potential transport partners for several years, but so far it has failed to close a deal. Its statement comes as £240mturnover Tibbett struggles to sort out problems at its loss-making car distribution arm, Axial. This has forced down Tibbeit's share price, leaving it vulnerable to takeover moves. Tibbeit's shares are currently trading at around £4.20; down £4.80 from their 1994 peak. Tibbett's defiant comments have been echoed by Transport Development Group, another company which could be vulnerable to a takeover. Group finance director Stephen Bentley says: "We certainly wouldn't think it la Unigate takeover) would be the way to go. TDG management thinks it still has a long way to go." City observers believe a predator would have to pay 020m-£350m for either company.


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