LELUCTANT Fodens direcors looking at the £8.4 million id for
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the company by RollsLoyce Motor Holdings have aade it clear the bid is unwelome.
And Rolls-Royce said last leek it thought the addition of 7odens would add "A signifiant fourth element" to the tolls-Royce Group.
But despite the glowing ribute, Fodens chief executive Villiam Foden told CM: "We o not welcome any takeover pproach from anyone at this tage of the company's recoery, but in the interests of the hareholders and employees, re will look at the offer and Tort on it."
A board meeting was held at odens on Monday morning rith the Rolls bid high on the genda, but directors 2..mained tight-lipped on the abject.
Emphasising the urgency of le matter, Fodens' chairman,. eslie Tolley was called back .om holiday on Friday to take ersonaI charge of the situaon.
The two compa.nieS are !ready linked through a ustomer and supplier relaonship under which Rollsoyce has been selling its 265 agine for the larger Foden Terms of the offer are seven 5p Ordinary Rolls shares for very 12 Fodens 50p Ordinary shares, or seven Rolls 25p shares for every three Fodens El Preference shares.
This week Fodens 50p shares had risen to 44p in response to the bid which is worth an estimated 41p a share — 36 per cent up on the pre-bid price.
Rolls' brokers Lazard Brothers has also announced that it will buy at 61p any Rolls shares that 'Fodens shareholders become entitled to but do not want. This is estimated to be worth 35.5p for each ordinary share and 142p for each preference share.
Mr Foden has . gone on record as saying that the takeover deal would represent a bad investment for shareholders.
During 1976, Fodens made a £1 million loss, but in the first six months of this financial year, it has shown a profit of £343,000 compared with a £797,000 deficit for the same period last year.