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

Recruitment Genius: Financial Adviser

£20000 - £60000 per annum: Recruitment Genius: Are you recently QCA Level 4 qu...

SThree: Graduate Recruitment Resourcer

£20000 - £22500 per annum + OTE £30K: SThree: SThree Group have been well esta...

Guru Careers: Application Support Analyst / 1st Line Support

£25 - 30k: Guru Careers: We are seeking an Application Support Analyst / 1st L...

Guru Careers: .NET Developer / Web Developer

£45K - £55K (DOE) + Benefits: Guru Careers: We are seeking a full stack .NET D...

Day In a Page

Not even the 'putrid throat' could stop the Ross Poldark swoon-fest'

Not even the 'putrid throat' could stop the Ross Poldark swoon-fest'

How a costume drama became a Sunday night staple
Miliband promises no stamp duty for first-time buyers as he pushes Tories on housing

Miliband promises no stamp duty for first-time buyers

Labour leader pushes Tories on housing
Aviation history is littered with grand failures - from the the Bristol Brabazon to Concorde - but what went wrong with the SuperJumbo?

Aviation history is littered with grand failures

But what went wrong with the SuperJumbo?
Fear of Putin, Islamists and immigration is giving rise to a new generation of Soviet-style 'iron curtains' right across Europe

Fortress Europe?

Fear of Putin, Islamists and immigration is giving rise to a new generation of 'iron curtains'
Never mind what you're wearing, it's what you're reclining on

Never mind what you're wearing

It's what you're reclining on that matters
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband

Chuka Umunna: A virus of racism runs through Ukip

The shadow business secretary on the benefits of immigration, humility – and his leader Ed Miliband
Yemen crisis: This exotic war will soon become Europe's problem

Yemen's exotic war will soon affect Europe

Terrorism and boatloads of desperate migrants will be the outcome of the Saudi air campaign, says Patrick Cockburn
Marginal Streets project aims to document voters in the run-up to the General Election

Marginal Streets project documents voters

Independent photographers Joseph Fox and Orlando Gili are uploading two portraits of constituents to their website for each day of the campaign
Game of Thrones: Visit the real-life kingdom of Westeros to see where violent history ends and telly tourism begins

The real-life kingdom of Westeros

Is there something a little uncomfortable about Game of Thrones shooting in Northern Ireland?
How to survive a social-media mauling, by the tough women of Twitter

How to survive a Twitter mauling

Mary Beard, Caroline Criado-Perez, Louise Mensch, Bunny La Roche and Courtney Barrasford reveal how to trounce the trolls
Gallipoli centenary: At dawn, the young remember the young who perished in one of the First World War's bloodiest battles

At dawn, the young remember the young

A century ago, soldiers of the Empire – many no more than boys – spilt on to Gallipoli’s beaches. On this 100th Anzac Day, there are personal, poetic tributes to their sacrifice
Dissent is slowly building against the billions spent on presidential campaigns – even among politicians themselves

Follow the money as never before

Dissent is slowly building against the billions spent on presidential campaigns – even among politicians themselves, reports Rupert Cornwell
Samuel West interview: The actor and director on austerity, unionisation, and not mentioning his famous parents

Samuel West interview

The actor and director on austerity, unionisation, and not mentioning his famous parents
General Election 2015: Imagine if the leading political parties were fashion labels

Imagine if the leading political parties were fashion labels

Fashion editor, Alexander Fury, on what the leaders' appearances tell us about them
Phumzile Mlambo-Ngcuka: Home can be the unsafest place for women

Phumzile Mlambo-Ngcuka: Home can be the unsafest place for women

The architect of the HeForShe movement and head of UN Women on the world's failure to combat domestic violence