BET steps up Rentokil battle
Thursday 28 March 1996
With city analysts expecting that a small rise in Rentokil's current pounds 1.9bn offer might win the battle, BET published new figures which it said underlined the growing strength of the business.
BET said that about 30 of the 50 largest shareholders in the company sent representatives to the meeting, where the chief executive, John Clark, outlined prospects for the key operations in the group.
Six operations - distribution, security, training, textile, leisure and plant hire - would produce turnover up 14 per cent this year, with operating margins rising to 11.5 per cent.
"The true potential of BET lies within these six key product groups. They are the bedrock of the future of BET, and we are confident that they will deliver growth well into the next decade," the chairman, Sir Christopher Harding, said .
But Rentokil seized on BET's failure to mention its cleaning and personnel services activities, which it claimed accounted for one-third of turnover.
Clive Thompson, Rentokil's chief executive, said: "Yet again BET shareholders must have been disappointed by what they saw and heard today. Their board remains unwilling to address the real performance of the majority of BET businesses."
The comments came as stockbrokers NatWest Securities issued a report that BET appeared to have little chance of escaping Rentokil's clutches. Analyst Paul Morland said: "We conclude that Rentokil's initial offer is generous and BET shareholders should not assume that it will be raised. If the offer is raised, it is unlikely to be by very much."
He believes that Rentokil has little scope to raise the offer because a takeover would enhance earnings by 3 per cent if there were no disposals.
"If Rentokil were to dispose of plant services and Style conference management, we estimate that the deal will be earnings neutral at the current offer price," he said.
- 1 Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
- 2 Margaret Thatcher 'expressed fears of Asian rising' at Anglo-Irish summit in 1984
- 3 Sussex couple die in suspected Christmas Day 'suicide pact'
- 4 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 5 The Unluckiest People of the Year 2014 (and one very unlucky giraffe)
Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
UK weather: Warning for more snow and ice as freezing temperatures and gales hit Britain
UK weather: Travel chaos continues as King's Cross train delays add to snow on roads
The Unluckiest People of the Year 2014 (and one very unlucky giraffe)
North Korea calls Barack Obama 'a monkey' in latest attack as 'The Interview' row festers
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Immigrants make UK racist, says Ukip councillor Trevor Shonk
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...