RAC to seek higher price at auction
Monday 08 February 1999
The club said that the auction would run in parallel with its stated policy of seeking a flotation of the business, following the Government's decision last week to block a pounds 450m sale to Cendant, the United States services group.
At least six companies are considering joining the auction process, with Lex Services, GE Capital and CinVen named as front-runners.
Both Lex and GE Capital, which already have a presence in the motor services industry, could realise synergies from a takeover.
CinVen, the venture capital group, was one of the leading contenders to buy the motor services division when the RAC first put it up for sale. Other likely corporate bidders include PPM Ventures, Schroder Ventures and Direct Line.
While bidders privately claim that the business is worth no more than pounds 330m, a spokesman for the RAC yesterday said the flotation would probably go ahead unless a bid approaching pounds 400m was received.
The RAC is expected to release 1998 figures for its motoring arm in the next few weeks. If these show strong trading they could be used to enhance the price.
A pounds 400m bid would allow the RAC's 11,500 full members to enjoy windfalls of more than pounds 30,000 each, substantially more than they are likely to gain from a flotation.
However, thousands of RAC members are excluded from the windfalls because of their status as overseas or retired members.
Around 1,700 overseas members are continuing a legal action against the RAC's board.
The overseas members will claim in court in a fortnight's time that they have been unfairly frozen out of the pounds 400m sale of the motoring arm. Only the 11,500 "full" members will benefit.
The overseas group claim that representatives of the Club made "false and misleading" statements" to Mr Justice Neuberger in his first court hearing last July when he ruled that the Club's rules could be altered to allow a sale.
The overseas members are also awaiting a judgment due "any day now" over whether their case can be heard in the jurisdiction of California or not.
- 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
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
Panic Saturday: 13 million Britons spend £1.2bn – while 13 million others across the country live in poverty unable to afford food
iJobs Money & Business
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...
£20000 - £25000 per annum + OTE £35000: SThree: SThree are a global FTSE 250 b...
£20000 - £25000 per annum + OTE £35K - £45K: SThree: SThree Group have been we...