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".
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
-
Jeremy Hunt: Tech and defence will make Britain great again - investors should stay or risk missing outFor investors shifting away from the UK, tech and defence may well be opportunities worth staying for, the former chancellor Jeremy Hunt says.
-
Can the House of Lords change the government’s mind on controversial inheritance tax reforms?The House of Lords has launched an inquiry into inheritance tax changes on pensions and agricultural property relief - can the government’s plans be stopped?
