Outlook: Tarmac/Anglo

ROY HARRISON has had a short-lived reign as chief executive of Tarmac. It was only last summer that Tarmac was separated from its Carillion construction arm. Its long time chairman and chief executive, Sir Neville Simms, was spun off with the construction interests too. At last Mr Harrison was to run his own show, free from Sir Neville's ever watchful eye and occasionally stifling influence.

At the time it was widely thought Carillion would fall first to the auctioneer's hammer. In the event it is Tarmac, and pretty reluctant Mr Harrison has been about Anglo-American's advances too. So much so, it was being said in some quarters yesterday, that he had to be arm twisted by his major shareholders into recommending the 585p a share terms. Mr Harrison dismisses the idea out of hand, but it is easy to see why some people might think it. Anglo American's first tried to cosy up to Tarmac on October 29 at 525p a share but was sent packing. Last week, it upped that to 550p but Tarmac walked away again, with Mr Harrison saying that even 600p was a number he would not recognise. Just a week later, he is singing the praises of selling at 585p.

Mr Harrison explained his verbal ballet as part of a smoke-and-mirrors act to get the best deal for the shareholders. "I wouldn't have got very far if I'd asked for 586p, would I?" he says with some justification. Whatever the truth, Mr Harrison has achieved a good price that everyone can be happy with, and if shareholders have been spared the expense and grief of a prolonged takeover battle, that's all to the good.