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
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1998
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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
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1998
User Contributions:
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