UK in dark after Fruehauf buy-out
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• A $1.2 billion (£800 million) management-led buyout at Fruehauf, the US automotive parts and truck company, has ended a five month battle for control of the company, but it is not clear yet how Fruehauf s British interests will be affected.
Graham Thomson, corporate and public affairs manager at Crane Fruehauf, says that his company is largely removed from what is going on in the States, "It is unlikely we will know for a couple of months how we will be affected."
Rentco's sales manager, Michael Boston says, "We are pleased to hear that the Fruehauf management now seem set to resolve the battle for the control of the company."
When asked about how Rentco will be affected by the management buyout at Fruehauf, Boston said, "At the moment, I want to leave it at that."
There are suggestions that the Fruehauf management team will have to sell-off some of the company's assets to pay for the purchase of the company, but there are no indications yet, so soon after the deal has been agreed, as to whether much selling will be necessary.
The management buyout at Fruehauf, which was led by the Wall Street securities firm Merrill Lynch, finally succeeded when another investment group led by Asher B Edelman dropped its hostile counter bid and accepted an increased share offer by the Fruehauf management.