|Fri, 27 Apr 2001 10:21:17 +1200
Quoted from citywire
Guinness Peat grabs more Time but could have a fight on its hands
The aggressive investment group Guinness Peat has again increased its
holding in branded watch distributor Time Products but it looks as
though a management buyout team is going to fight them all the way.
Guinness Peat (GPG) announced today that it had picked up a further
50,000 shares at 167p and 2.225 million at 1.75p yesterday, a total
payout of £4 million. This increases GPG's holding in the £72 million
company (TIP) to 10.29 million shares or 24.52%.
However it appears that executive chairman Marcus Margulies is
prepared to fight it out with GPG (GPG) for control of the company
his father founded 70 years ago. Along with members of his family
Margulies owns almost 22% of the company and is believed to have been
discussing an offer of 180p per share and could be tempted to go
higher. GPG failed last month with a bid to increase its holding to
29.9% at 150p a share.
Margulies made his intentions clear again this week when he said: 'As
notified last month, I have made an approach to the company with a
view to buying out the other shareholders. Discussions are ongoing
and as soon as further details are available these will be announced
The heightened corporate activity at Time has driven its share price
since the turn of the year. It registered a low of 110.5p in
mid-January before beginning its climb, it hit a new high of 170.5p
yesterday and has gone one better today, currently up a further 6p at
a new high of 176.5p.
Yesterday Time issued final results for the year to 31 January
showing turnover falling from £64.4 million to £59.3 million while
pre-tax profits grew from £7.4 million to £9.1 million.