Wassall poised to acquire TLG as US rival quits race
Tuesday 29 September 1998
Houston-based Cooper yesterday said it would not increase its pounds 321m offer for the British group, prompting the board of TLG, Europe's second-largest lighting fitter, to recommend Wassall's pounds 351m bid.
John Riley, the chief executive of Cooper, said: "We have decided that a higher bid for TLG would not provide the return we expect for our shareholders."
The US group had been under pressure to increase its bid since the beginning of this month when Wassall trumped its original 160p-per share offer with a 175p-per share bid. Wassall coupled the approach with an aggressive programme of market purchases of TLG shares that left it with more than 25.5 per cent of the company's capital, well above the 8 per cent acquired by Cooper. The end to the bid battle sent TLG shares plummeting more than 6 per cent to 171.5p. Wassall shares dropped 11p to 226.5p.
Christopher Miller, the Wassall chief executive, said it was "delighted" at Cooper's withdrawal and said the US company's decision made a Wassall victory "very likely". He said there were "no immediate plans" to cut jobs among TLG's 4,000 staff. The priority would be to increase TLG's return on sales to the level of its European competitors. He said he wanted to raise TLG's returns from the current 7 per cent to the 12 per cent posted by Dutch electronics giant Philips, the European market leader.
TLG was spun off from the music group Thorn EMI via a management buyout and floated on the market in November 1994 at 115p. The shares have been underperforming the sector over the past year as overcapacity in the lighting industryreined in earnings.
- 1 East 17 bandmember Brian Harvey in 'very desperate situation’
- 3 Vladimir Putin says Russia will fight for the right of Palestinians to their own state
- 4 Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
- 5 The West has it totally wrong on Lee Kuan Yew
East 17 bandmember Brian Harvey in 'very desperate situation’
Vladimir Putin says Russia will fight for the right of Palestinians to their own state
Ohio Democrat Teresa Fedor speaks out during abortion debate to reveal she has been raped – and is interrupted by laughter from Republicans
Children take eight Isis captives to be beheaded in latest propaganda video
Jeremy Clarkson 'could be given minder' ahead of a potential Top Gear return
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
The West has it totally wrong on Lee Kuan Yew
Revealed: Putin's army of pro-Kremlin bloggers
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...