Henlys raises bid to pounds 309m

THREE DIRECTORS at Dennis, the bus parts maker, were yesterday sitting on a pounds 10.5m paper profit after Henlys, another bus builder, raised its bid for the company to pounds 309m, trumping a rival offer from engineer Mayflower.

Henlys' revised cash-and-shares bid values the 6.1 per cent stake owned by Stephen Burton, the chief executive, Brendan Geary, the finance director and Richard Owen, a non-executive director, at more than pounds 18m.

The three were part of the team which bought Dennis from Hestair, the industrial conglomerate, in a management buyout in 1989. When the company floated in 1992, the directors' holdings were worth around pounds 7.5m.

A spokesman for the company said Mr Burton and Mr Geary were not planning to sell their stakes. If Henlys is successful, Mr Burton will become deputy chief executive of the new group, which would have a market value of around pounds 560m. Mr Geary will be an executive director. The spokesman said Mr Owen would not be part of the board of the merged group, but declined to say whether he would sell his holding.

The Dennis board yesterday recommended Henlys' improved bid of 0.7 Henlys shares and 150p in cash for each Dennis share. This is an increase of more than 60 per cent on Henlys' original pounds 190.2m all-share offer, and is more than 20 per cent higher than the pounds 255m cash bid by Mayflower.

Henlys' bid received a boost earlier this week when the Swedish industrial group Volvo, one of the world's biggest bus producers, said it would buy a 10 per cent stake in the company.

Henlys and Mayflower have been locked in a bitter battle for control of Dennis, which makes bus chassis, since Monday when Mayflower gatecrashed the planned merger between Henlys and Dennis. A spokesman for Mayflower said yesterday that the company, which last year abandoned a bid for its much larger rival Vickers, was "considering its options but it is certainly not pulling out". He noted that Mayflower was offering three times more cash than Henlys. Analysts said a counterbid by Mayflower was still possible.

Henlys, which specialises in bus bodies, said the deal would dilute earnings in 1999 but raise them thereafter. Henlys shares ended down 52.5p at 512.5p: Dennis rose 47p to 508.5p.

Suggested Topics
Start your day with The Independent, sign up for daily news emails
ebooks
ebooksA special investigation by Andy McSmith
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Marketing Manager - B2B, Corporate - City, London

£45000 - £50000 per annum + benefits : Ashdown Group: A highly successful, glo...

Neil Pavier: Commercial Analyst

£50,000 - £55,000: Neil Pavier: Are you a professionally qualified commercial ...

Loren Hughes: Financial Accountant

£45,000 - £55,000: Loren Hughes: Are you looking for a new opportunity that wi...

Sheridan Maine: Finance Analyst

Circa £45,000-£50,000 + benefits: Sheridan Maine: Are you a newly qualified ac...

Day In a Page

General Election 2015: The masterminds behind the scenes

The masterminds behind the election

How do you get your party leader to embrace a message and then stick to it? By employing these people
Machine Gun America: The amusement park where teenagers go to shoot a huge range of automatic weapons

Machine Gun America

The amusement park where teenagers go to shoot a huge range of automatic weapons
The ethics of pet food: Why are we are so selective in how we show animals our love?

The ethics of pet food

Why are we are so selective in how we show animals our love?
How Tansy Davies turned 9/11 into her opera 'Between Worlds'

How a composer turned 9/11 into her opera 'Between Worlds'

Tansy Davies makes her operatic debut with a work about the attack on the Twin Towers. Despite the topic, she says it is a life-affirming piece
11 best bedside tables

11 best bedside tables

It could be the first thing you see in the morning, so make it work for you. We find night stands, tables and cabinets to wake up to
Italy vs England player ratings: Did Andros Townsend's goal see him beat Harry Kane and Wayne Rooney to top marks?

Italy vs England player ratings

Did Townsend's goal see him beat Kane and Rooney to top marks?
Danny Higginbotham: An underdog's tale of making the most of it

An underdog's tale of making the most of it

Danny Higginbotham on being let go by Manchester United, annoying Gordon Strachan, utilising his talents to the full at Stoke and plunging into the world of analysis
Audley Harrison's abusers forget the debt he's due, but Errol Christie will always remember what he owes the police

Steve Bunce: Inside Boxing

Audley Harrison's abusers forget the debt he's due, but Errol Christie will always remember what he owes the police
No postcode? No vote

Floating voters

How living on a houseboat meant I didn't officially 'exist'
Louis Theroux's affable Englishman routine begins to wear thin

By Reason of Insanity

Louis Theroux's affable Englishman routine begins to wear thin
Power dressing is back – but no shoulderpads!

Power dressing is back

But banish all thoughts of Eighties shoulderpads
Spanish stone-age cave paintings 'under threat' after being re-opened to the public

Spanish stone-age cave paintings in Altamira 'under threat'

Caves were re-opened to the public
'I was the bookies’ favourite to be first to leave the Cabinet'

Vince Cable interview

'I was the bookies’ favourite to be first to leave the Cabinet'
Election 2015: How many of the Government's coalition agreement promises have been kept?

Promises, promises

But how many coalition agreement pledges have been kept?
The Gaza fisherman who built his own reef - and was shot dead there by an Israeli gunboat

The death of a Gaza fisherman

He built his own reef, and was fatally shot there by an Israeli gunboat