EuroDollar float goes ahead despite uncertain market

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EURODOLLAR, the UK's second-largest car rental business, is pushing ahead with its flotation despite the volatility of the stock market, which has led several companies to abandon share issues.

The company, which issued its pathfinder prospectus yesterday and will be valued at more than pounds 100m, dismissed fears about cuts in spending on cars by British companies.

Ian Mosley, chief executive, said: 'We aim for the working company car, for the people who have to be mobile. Yes, there will be a contraction in the company car market but the perk area is never really going to be an angle for us.'

EuroDollar will come to the market via a placing and public offer of shares. A large part of the money raised will repay pounds 34m of preference shares.

The company was known as Swan National in 1973 when it became part of UDT, which was taken over by TSB in 1981.

In 1989 it made a marketing deal with Dollar, the US car rental company owned by Chrysler, to use its name. EuroDollar was bought from TSB by its management last year for pounds 118m, including debts.

It operates a fleet of 12,000 vehicles from 104 branches. Overseas its franchise network spans 33 countries - part of its development focus after flotation.

Nearly 90 per cent of its pounds 73m turnover last year came from the UK. Pre-tax profits were pounds 12.6m, up from pounds 9.2m the year before.

The full prospectus will be published by Schroders, the merchant bank, on 22 June. First dealings are set for 6 July.