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.
Diving in at the deep end is no excuse for shirking the style stakes
- 2 Why I'm on the brink of burning my Israeli passport
- 4 War is war: Why I stand with Israel
- 5 Blackest is the new black: Scientists have developed a material so dark that you can't see it...
Ian Thorpe gay: Olympic swimmer comes out in Parkinson interview
Stephen Fry ‘criticises Operation Yewtree in dinner party rant’ calling for tougher laws to deter false sex abuse allegations
Israel-Gaza conflict: ‘Sderot cinema’ image shows Israelis with popcorn and chairs 'cheering as missiles strike Palestinian targets'
Israel-Gaza conflict: Israeli air strike destroys home for the disabled killing two women residents
Israel-Gaza conflict: Israeli PM says conflict may 'continue for a long time' as hundreds of Palestinians flee their homes
Sustained immigration has not harmed Britons' employment, say government advisers
War is war: Why I stand with Israel
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Australia facing international condemnation after turning around Sri Lankans at sea
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
iJobs Money & Business
£70000 per annum: Harrington Starr: Information Security Manager (ISO 27001, A...
£75000 - £85000 per annum + ex bens: Deerfoot IT Resources Limited: Biztalk Te...
£60000 per annum: Harrington Starr: Trade Desk Specialist (FIX, Linux, Windows...
£35000 per annum: Harrington Starr: Service Desk Analyst (Windows, Active Dire...