Break-up looms as white knights desert Redland
Friday 17 October 1997
Investors in Redland expecting a white knight to counter Lafarge's pounds 1.7bn hostile offer, made on Monday, for the roofing and aggregates company, may be disappointed after comments yesterday from some heavyweight players in the building industry.
A source at Tarmac, the UK's largest aggregates company, said yesterday that it was "pretty unlikely" that the company would bid for any of Redland. "It is hard to see us as a contender," said the source.
Analysts said that Tarmac would probably have to issue paper to buy Redland's UK and US aggregates business, valued at around pounds 1bn. The company has high net debt and is still working through last year's asset swap with Wimpey.
RMC said yesterday that it had an "open mind" about Redland's aggregates business and was watching the situation "closely."
However a source at the company indicated that RBB, Redland's roofing business was not a consideration: "I doubt if we will extend in that direction. We already have our hands full."
Pioneer, the Australian building materials group also appears to have ruled out a full bid. Though the group has a roofing business in Australia and the USA and said that its strong balance sheet could fund expansion, Pioneer yesterday said that it did not consider roofing as its core business and that the German shareholding in RBB, 43.5 per cent owned by Braas, could be a problem.
"That is another element in the attractiveness or unattractiveness of Redland," said an insider.
Hanson is also believed to have ruled itself out as a full bidder. Blue Circle, the cement company whose name has also cropped up as a potential bidder is thought to feel that buying Redland, its customer, would alienate other cement users like Tarmac. Lafarge has two weeks from Monday to post its offer document.
elephant appealThe first 23 lots in our charity auction have now gone. But there are 22 more still up for grabs
travelWill high-value tourism help the workshops of this Renaissance city?
Geoffrey Macnab does not like the comedian's big screen debut
Look beyond the usual shows for the best festive telly
French pub fined €9,000 after customers returned empties to bar - because it's 'undeclared labour'
Ten best places to live in the UK: Hart in Hampshire takes top spot
Winter Solstice marks shortest day of the year
Burglar steals video tapes of child abuse, hands them into police
Paul Walker's daughter Meadow attends Justin Bieber Believe premiere
- 1 Tim Sherwood challenges Daniel Levy to set out vision for Tottenham Hotspur’s future
- 2 French pub fined €9,000 after customers returned empties to bar - because it's 'undeclared labour'
- 3 Sun will 'flip upside down' within weeks, says Nasa
- 4 #Teamnigella: It’s the only side to be on
- 5 Christmas comes early: Justin Bieber is 'retiring from music'
- < Previous
- Next >
iJobs Money & Business
£59999 - £80001 per annum + Benefits: Pro-Recruitment Group: A Top 10 firm in ...
£50000 - £75000 per annum + benefits + bonus: Harrington Starr: Project Manage...
£60000 - £90000 per annum + benefits + bonus: Harrington Starr: Business Analy...
£Negotiable: Citifocus: High calibre individual with institutional client serv...