Alexander Dennis opts out of Optare, shares crash
Optare, the struggling Leeds-headquartered bus manufacturer, was stuck in reverse on Thursday on news that a possible takeover appears to be off.
Optare, the struggling Leeds-headquartered bus manufacturer, was stuck in reverse on Thursday on news that a possible takeover appears to be off.
Rival firm Alexander Dennis (ADL) had said it was interested in buying Optare but the sticking point has been the position of minority shareholder Ashok Leyland, an Indian bus producer.
ADL wanted to buy 100% of the issued stock but Ashok Leyland said it wouldn't sell its 26% stake "at any price".
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
This seems to have put the kybosh on the deal.
Ashok Leyland has a standing agreement to invest in Optare for a significant increase in its shareholding. The offer from ADL would have been seen as a direct threat to those plans.
ADL had also wanted greater access to Optare's books, a request Optare would not agree to until it knew a firm offer for the available stock was likely.
Optare has fallen 82% during 2011 and 99% since March 2008. It employs around 800 people.
BS
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Will “Liberation Day” strike again?
Donald Trump’s 90-day tariff pause comes to an end on 9 July. Can we expect further market turmoil?
-
Israel claims victory in the '12-day war' with Iran
Donald Trump may have announced a ceasefire in the 12-day war between Israel and Iran, but what comes next depends on what happens internally in Iran