Friday May 9, 05:35 PM
TDG seeks to resolve ownership
By Philip Stafford
TDG (LSE: TDG.L - news) is seeking a swift resolution to its future with a possible deadline imposed by the Takeover Panel after it revealed
that rival Wincanton (LSE: WIN.L - news) had also made an approach for the logistics group.TDG used its annual meeting to announce that Wincanton had made an informal offer on April 14 at the equivalent of 290p per share. Wincanton's approach topped another informal offer in late February from Laxey Partners, the private equity group, equivalent to 275p per share. It comes as TDG admits that the talks of the past few months are beginning to disrupt business. "There is some evidence of customers delaying placing orders with us, given the uncertainty surrounding our ownership," said Charles Mackay, the chairman. "This situation has also constrained our ability to make earnings enhancing acquisitions," he said. TDG added it was looking for agreement with all parties for a "put up or shut up" notice from the Takeover Panel to set a formal deadline for offers. Wincanton has undertaken preliminary due diligence since it made its approach. Laxey has completed due diligence. Laxey said it remained interested in pursuing a possible cash offer for TDG. However, its offer is dependent on securing financing and the recommendation of the TDG board. The issue is further complicated by Laxey's 22 per cent stake in TDG. Mr Mackay said that trading at TDG in the first three months of the year was ahead of management's expectations and better than 2007 levels. However, he added that while gross new business wins in the first quarter were flat, net wins were lower because of consolidation in the retail sector. TDG added that cash flow in the first quarter was better than expected. The group's net debt at the end of the quarter fell from £21m to £19.0m at December 31, 2007. Wincanton shares closed down 7p at 361¾p while TDG rose 41½p to 271½p.
Click here for more from FT.com
|
Send Article by Email
