Marley rescued by pounds 364m Belgian bid
Thursday 03 December 1998
Marley recommended that shareholders accept the 125p-a-share offer, which represents a 60 per cent premium to its share price a week ago, as Etex went into the market to buy a 20 per cent stake in the company.
David Trapnell, chief executive of Marley, yesterday insisted Etex had approached Marley about the deal "weeks before" the hostile bid last week from John Mansfield, the small timber merchant being used as a takeover vehicle.
"We have known this group [Etex] for a long time and there has been a close link over the years. We have been talking and in the last few weeks we have taken that talk a stage forward," Mr Trapnell said.
Mr Trapnell said Etex had assured him it would keep the group intact "for the time being".
Mr Trapnell and Chris Beenham, the finance director and the only other executive director, will leave after staying "a few months" to oversee the integration with Etex.
Etex is a privately-owned building materials group, roughly twice the size of Marley, with a turnover of 74.8 Belgian francs (pounds 1.4bn).
Specialising in plastics, roofing and flooring, it has operations in Europe and Latin America, including a joint venture with Marley in Brazil.
Its offer came just six days after the hostile paper bid by John Mansfield Group, a takeover vehicle headed by Stuart Wallis, the former chairman of Fisons, and backed by the financiers Brian Myerson and Julian Treger.
John Mansfield said yesterday it was "considering its options". But sources familiar with the company said it was unlikely to make a higher bid.
Phillips & Drew fund management, which holds a 14.9 per cent stake in Marley, encouraged the break-up bid after meeting Mr Trapnell in September to discuss the company's strategic review.
The fund manager was said to be "very disappointed" when Marley came out with no firm plan of action after years of poor performance.
It agreed to underwrite pounds 1.5m of John Mansfield's costs and is now sitting on a profit of around pounds 20m as a result of the takeover battle.
The Etex offer caused Marley's share price to jump 17.5p yesterday to 123p, up from 78p last week.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...