Trust Motor approach worries institutions
Saturday 28 February 1998
The management team is led by Nicholas Barr who owns 7 per cent of the company. His brother Robert and Trust Motor's former chairman Malcolm Barr own a further 9 per cent.
The company said that, provided discussions reached a satisfactory conclusion, it expected an offer of around 220p valuing the company at pounds 33m. Less than nine months ago, the shares were trading at 343p.
In August last year the company sold its Wallace Arnold coach tours business for pounds 42m to a management buy-out team and paid out a 120p special dividend to shareholders costing pounds 18m. Since then the shares have drifted down by more than 200p. Yesterday's bid announcement lifted the shares from 139.5p to 196.5p.
One large shareholder said: "We will want to look at this deal very carefully to make sure shareholders are not being legged over."
Another institution said: "We will scrutinise the deal once it is in the open and if we don't feel it is a good price we will be looking for other buyers to step in."
Richard Bell, Trust Motor's finance director who is not part of the buy- out team, and the non-executive directors formed an independent committee to review the offer and asked its advisers Hambros to seek other indicative bids. As a result the independent directors are in discussions with one other potential purchaser apart from the management team. Trust Motor operates a number of Ford, Vauxhall and Peugeot dealerships and bought a body repair business last December. In the half year to last June it made a pounds 2.3m pre-tax profit on turnover of pounds 122m.
- 1 BBC election debate: The one photo that summed up the whole 90-minute leaders debate
- 2 18th century sex toy found in 'toilet of sword fighting school' in Poland
- 3 'I wish my teacher knew...': Young students share their 'heartbreaking' worries in notes
General Election 2015: David Cameron catching up in polls – but he badly needs a clear lead
South Africa xenophobic attacks: Shops looted and violence on streets of Johannesburg as foreigners are forced to hide in police stations
Earthworms rain down from skies over Norway, puzzling scientists
18th century sex toy found in 'toilet of sword fighting school' in Poland
'I wish my teacher knew...': Young students share their 'heartbreaking' worries in notes
The only black face in the Ukip manifesto is on the page about overseas aid
Ukip is the only main political party to not address LGBT rights in its manifesto
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
General Election 2015: Polish prince challenges Nigel Farage to a duel over immigration question
iJobs Money & Business
£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...
£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...
£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...