Plaxton in middle of Cowie bid
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• Workers at Plaxton face an uncertain future as its parent company, Henlys Group, fights a takeover bid from rival T Cowie (CM 2-8 July).
This week Henlys' board of directors rejected the £27.9m bid as "unsolicited and unwelcome". It says the offer "significantly under values" the group, despite its prediction last week that it would remain in the red for the half year to June. The board believes Henlys has a good future," says financial adviser Charterhouse Bank. "The dealership side is particularly strong and although there is obviously a problem on the bus and coach side it's a problem across the industry," it says. "It looks like Cowie is making an opportunistic move to get the motor dealership at a discounted rate after the profit warning to the city made the shares go down," it adds. But Cowie reckons it could do a better job at the Scarborough-based coachbuilder, where Henlys stated last week it was preparing to implement "a major programme of cost reductions".
It vowed to develop the bodybuilding side of the group amid accusations that it is only interested in Henlys motor retail chain.
Cowie is optimistic that the shareholders will overturn the decision of the board of directors which it says has less than a 1% stake in the group.
"We have had very positive feedback from the City. Everyone agrees Cowie's management style is very successful as can be seen from the financial figures," says a representative. Last year Cowie, which owns coach operator Grey-Green and PCV dealer Hughes Daf turned in a profit of £18.2m, a 61% increase on the year before, on a £565m turnover.