Tony O“Reilly, Irish billionaire and chairman of Waterford Wedgwood, could be prompted into a hostile takeover bid for Royal Doulton after the struggling pottery giant said it was unhappy about being…
Tony O“Reilly, Irish billionaire and chairman of Waterford Wedgwood, could be prompted into a hostile takeover bid for Royal Doulton after the struggling pottery giant said it was unhappy about being added to his list of international luxury goods interests. Hamish Grossart, chairman of Royal Doulton, said the company had decided to “review its stategic options” after rival Waterford Wedgwood bought 14.99% of its shares recently. Analysts read this as Grossart saying he is now looking for a “white knight” to mount a takeover bid for the whole company, thereby thwarting any ambitions O“Reilly may have to exert control over Royal Doulton in taking his minority holding. In a carefully worded statement, Grossart, a Scottish merchant banker brought in last year to rescue Royal Doulton, said Waterford Wedgwood had told him it had no intention of making a full bid. He added that, if that was the case, its presence was “unlikely to operate in the best interests of our shareholders”. Grossart is understood to suspect that Waterford Wedgwood has bought its stake to scare away any rivals who may be thinking of making their own bid. Waterford Wedgwood, whose shares are about 30% owned by O“Reilly and his family, repeated its position that its 14.99% stake is intended as an “investment”. It made no further comment. Waterford Wedgwood can buy up to 29.9% of Doulton“s shares without being forced to make a full takeover. Royal Doulton“s shares have fallen 72% from their high of three years ago, making it a potential target for the likes of Lenox of the US or Villeroy & Boch in Germany. Grossart has four main options open to him: split up the company, strike a trading alliance with a rival such as Lenox, agree terms with O“Reilly or find someone willing to make a full bid. Royal Doulton“s shares added 1p to 90p, capitalizing the company at UK 75 million.