IE FUTURE of United Parcels' bid for York Trailer Holdings
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has been thrown into total confusion, with York chairman Fred Davies complaining that it is turning into a "smash and grab raid".
United Parcels is pressing ahead with its 45p-per-share £4.96m bid for York against a background of Phillips and Drew, York's City advisers, withdrawing its recommendation of acceptance of the deal.
That is because York's halfyear results show pre-tax profits up from £258,000 in the first six months of 1984 to £592,000 or £167,000 above the minimum level for United to go ahead with the deal.
June was a particularly strong trading month, and the sale of a licence agreement _contributed an additional £75,000 of profit to York, according to Mr Davies.
Mr Davies and his sons Jim and John have already sold their 60 per cent shareholding in York to United, leaving United to win over the remaining 40 per cent of shareholders.
But Phillips and Drew's withdrawal of its recommendation has given Mr Davies second thoughts, and speaking from his Toronto, Canada home he told CM on Tuesday that he was planning to fly back to Britain by Concorde for a meeting with his solicitors.
"So far as I'm concerned, the transaction is very far from being complete," he said. "It has developed into a smash and grab raid."
Fle stressed that he did not blame United for taking advantage of the "unfortunate calculation" of York's share value before the half-year results were announced. "There are no bad motives on United Parcels' part."
But he said many thousands of minority shareholders had waited years for a bid for their shares, and there was a danger now that they could be locked into the 45p offer.
Mr Davies said he was looking either for a better price from United Parcels or for no sale at all.
United Parcels posted a document detailing its offer to shareholders on Friday last week. The offer, which is conditional once 75 per cent of the shares have been sold to it, closes on August 9, but may be extended.