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.
- 2 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
Rowan Atkinson to sell £10 million McLaren 'supercar' he crashed into a tree and a lamppost
UK weather: Snow to fall in the coming week with sub-zero temperatures to last until early February
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Warriors in ancient Iraq suffered Post-Traumatic Stress Disorder more than 3,000 years ago, say researchers
US blames Russia after rocket attacks in Ukraine kill at least 30
Nigel Farage: NHS might have to be replaced by private health insurance
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
British Muslim school children suffering a backlash of abuse following Paris attacks
George Galloway condemns 'racist, Islamophobic, hypocritical rag' Charlie Hebdo at freedom of speech rally
Islamic history is full of free thinkers - but recent attempts to suppress critical thought are verging on the absurd
iJobs Money & Business
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...
£16000 - £25000 per annum: Recruitment Genius: This is an exciting opportunity...
£45000 - £47000 per annum + bonus + benefits: Ashdown Group: Java Developer / ...
£35000 - £38000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...