Smith & Wesson sale stalls over lawsuit threat
Sunday 26 March 2000
Tomkins, the conglomerate, is facing fresh obstacles to its unrequited hopes of selling Smith & Wesson, the famous gun manufacturer.
Greg Hutchings, the Tomkins chairman, had hoped that an agreement reached nine days ago with the US government would facilitate a sale.
Under the terms of the agreement, the US administration agreed not to sue S&W for the cost of gun violence, in return for a promise from the Massachussetts-based subsidiary that it would improve the safety of its weapons.
But the agreement still leaves S&W exposed to possible lawsuits from individual US states, and Mr Hutchings is unwilling to sell the division until the threat of legal liability has been lifted.
Although trade buyers for S&W are thin on the ground, analysts believe it would be a prized target for venture capitalists eager to secure its healthy cash flows at a knockdown price.
There is speculation that Ed Schultz, chief executive of S&W, would be party to any shot at taking private the business which made the six-shooters used by Wyatt Earp in the gunfight at the OK Corral.
Mr Hutchings appears finally to have bowed to City pressure for the rationalisation of the jumble of assets which makes up Tomkins.
He has already taken a major step towards focusing on its core engineering interests by announcing the planned disposal of RHM, its food products arm, which is expected to fetch £1.4bn.
- 1 Rice Bucket Challenge: India's take on the Ice Bucket Challenge 'for Indian needs'
- 2 Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
- 3 ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
- 4 Rubble Bucket Challenge: Ice Bucket Challenge adapted in solidarity with Gazans whose homes have been destroyed in conflict
- 5 Car tax disc changes: Make sure you know the new rules from 1 October or risk £1,000 fine
Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
The 13 obscure UK laws you didn’t know you were breaking
13 laws you didn't know you were breaking
Car tax disc changes: Make sure you know the new rules from 1 October or risk £1,000 fine
Exclusive: We share blame for creating 'jihad generation', says Muslim strategist
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Jeremy Clarkson is a cultural tumour and needs to be removed, says comedian Frankie Boyle
Air strikes? Talk of God? Barack Obama is following the jihadists’ script after James Foley beheading
- < Previous
- Next >
iJobs Money & Business
£23000 - £26000 per annum: Ashdown Group: Account Executive / Client Services ...
£36000 - £38000 per annum: Ashdown Group: Executive PA to CEO & Executive Dire...
£25000 - £28000 per annum: Ashdown Group: Generalist HR Administrator - Tunbri...
£45000 - £75000 per annum + benefits+bonus+package: Harrington Starr: Senior C...