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 Cyclist who knocked down three-year-old girl says his life has been 'destroyed'
- 2 A politically correct lefty goes to see Top Gear live – you'll probably believe what happened next
- 3 Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
- 4 Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
- 5 Snoop Dogg on why he doesn't regret displaying misogyny towards women
Cyclist who knocked down three-year-old girl says his life has been 'destroyed'
Woman accidentally shoots herself in the head while posing for a selfie
How China's richest man Li Hejun lost $15bn in an hour - and made a fortune
Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
Snoop Dogg on why he doesn't regret displaying misogyny towards women
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
The day that Britain resigned as a global power
Almost a third of school pupils believe 'Muslims are taking over our country', study claims
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
Gay marriage 'Bert and Ernie' cake bakery found guilty of discrimination in Northern Ireland
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...