450m RAC takeover goes to MMC

Article Abstract:

The takeover of the RAC roadside breakdown service, has been referred to the Monopolies and Mergers Commission (MMC). The US conglomerate Cendant, is bidding GB 450mn for the RAC, and this announcement is a blow not only to it but also to the 12,000 RAC members who were hoping to receive a windfall of GB 35,000. The referral was deemed as necessary as Cendant already owns the Green Flag breakdown service. If the takeover was permitted then the RAC would become the second largest rescue service in the UK. The MMC must report by December 23 1998 on its decision, and both Cendant and the RAC are confident that the deal will be approved and go ahead. The two companies believe that the takeover will result in stronger competition and better consumer benefits and there should be no reason to block the deal. The referral could see the windfall to customers blocked or at least delayed. *

Comment:

Is bidding GBP450 mil for takeover of RAC roadside breakdown service

Professional, Scientific, and Technical Services, Business Services, Automotive Repair Services, Automotive Repair and Maintenance, Automotive maintenance, Avis Budget Group Inc., Royal Automobile Club

Rolls-Royce falls into German hands

Article Abstract:

Shareholders in Vickers have accepted Volkswagen's GB 430mn bid for Rolls-Royce, the luxury British carmaker. The VW bid was accepted by a 98% majority of the 62% of shareholders who voted. There had been a rival bid at the final stages from Crewe Motors, a consortium of enthusiasts led by Michael Shrimpton, who tried to table a GB 460mn bid to keep it in British hands. It failed because the chairman of Vickers said it failed to identify its backers, there was no certainty of funds and the time it would take to complete the offer. Upon the news of the result BMW said it would cancel its contract with Rolls-Royce to supply them with engines. VW, anticipating this, will pay Vickers GB 120mn for its engine manufacturer Cosworth.

Comment:

Accepts Volkswagen's GBP430 mil bid for Rolls-Royce, the luxury British carmaker

Motor Vehicles, Automobile and Light Duty Motor Vehicle Manufacturing, Motor Vehicles & Parts, Transportation Equipment Manufacturing, Volkswagenwerk AG, Rolls Royce, Vickers

UK: PERKINS REVEALS TAKEOVER BID

Article Abstract:

Perkins has announced that it has received a takeover bid from a financial buyer but has refused to reveal the identity of the bidder. Talks between Perkins and the mystery company are believed to be at an advanced stage, causing shares in Perkins to rise by GB[pound] 0.063 to GB[pound] 1.095 on 12 December 2000. Perkins is now said to be worth some GB[pound] 136mn.

Preserved Fruits and Vegetables, Canned, Dried & Frozen Foods, Fruit and Vegetable Preserving and Specialty Food Manufacturing, Statistical Data Included, Mergers, acquisitions and divestments, Food industry, Brief Article, Food, Frozen foods industry, Perkins Foods PLC