Vaux job losses loom as brewery buyout talks fail
Wednesday 24 March 1999
Swallow, known as Vaux Group until a month ago, briefed staff at its landmark brewery in Sunderland to warn them of redundancies after non- executive directors vetoed the buyout.
Peter Catesby, chief executive, said the talks had finally collapsed over a supply agreement which, according to observers, would have forced Swallow to subsidise the buyout team by committing itself to a three- year supply deal.
"The real issue was the difference in value between the alternatives and the management buyout," he said. "The buy-out had to its benefit the fact that all the jobs would have been saved."
The collapse of talks followed initial questions in the City over the value to shareholders of the pounds 68m price tag for the MBO, which would have included 350 Swallow pubs and the two breweries.
The buyout was led by Frank Nicholson, a member of the family which has controlled Vaux for more than 120 years. Sir Paul Nicholson, current chairman of Swallow, is Frank's brother.
Martin Grant and Neil Gossage were dismissed as chief executive and finance director of the group last month after they raised concerns about the MBO proposal behind the board's back with leading shareholders. One shareholder said their position had been vindicated by yesterday's developments.
Swallow intends to resume discussions with other interested parties in its efforts to sell the brewery.
- 1 Christians: The world's most persecuted people
- 2 Israel-Gaza conflict: The secret report that helps Israelis to hide facts
- 3 Thatcher ‘was warned of Tory child sex party claims’
- 4 Lauren Goodger sex tape: Reality star calls for tougher laws on revenge porn after intimate video leaks online
- 5 The Simpsons Family Guy trailer: First look at crossover episode after Comic-Con debut
A new Russian revolution: The cracks are starting to appear in Putin’s Kremlin power bloc
Thatcher ‘was warned of Tory child sex party claims’
Israel-Gaza conflict: President Obama presses Netanyahu to call ‘immediate and unconditional’ Gaza ceasefire
Lauren Goodger sex tape: Reality star calls for tougher laws on revenge porn after intimate video leaks online
Iraq crisis: End 'very near' for Christianity after Isis takeover, says Bishop
Israel-Gaza conflict: The secret report that helps Israelis to hide facts
A day in the life of Vladimir Putin: The dictator in his labyrinth
Opponents of Israel's military operation in Gaza are the real enemies of Middle Eastern peace
Were 'Poor Doors' added to mixed developments so wealthy residents don't have to go in alongside social housing tenants?
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
iJobs Money & Business
£28000 - £32000 per annum: Ashdown Group: Training/Learning and Development Co...
£28000 - £32000 per annum + benefits: Ashdown Group: Training Programme Manage...
£30000 - £45000 per annum: Harrington Starr: A Global Financial Service Organi...
£30000 - £40000 per annum + Bonus+Benefits+Package: Harrington Starr: C# Web d...