Forum Archive Index - October 2000

[malcolmcoleman@hotmail.com]

Mr Y2K  has sent you this Article from
http://www.citywire.co.uk/articles/
News to Make Investors Money

Some news about GPG.., in case it has not yet been revealed.

Dawson bid arrives at last
29/09/2000 18:11:18

Push has come to shove at Scottish cashmere group Dawson International
with a bid that could bring rich rewards for Citywire readers.

An unidentified third party is making a cash offer for Dawson (DWSN) where
Sir Ron Brierley's corporate raiding Guinness Peat Group (GPG) (GPG) has a
21% stake.

Speculation over the last few weeks has suggested GPG might be in the
market to make an offer itself. Another contender is the Italian concert
party led by Monte Carlo-based Carlo Gancia, which control 27% of Dawson.

The offer values Dawson at 85p per share compared with its current share
price of 77p, up 14p on the day,  and up 61% since we drew attention to
the activities of Gancia and his partners.

Those who invested at the time of our original story will have made a
return of almost 80% on their investment in only four months if the offer
is accepted.

In recent weeks a new investor has joined the Gancia party: Sergio Costa,
possibly the Sergio Costa who funded the Costa Coffee chain since he also
has links with Monte Carlo. Costa holds 2.9 million of the 27.1 million
shares owned by the group as a whole.

The larger size of the Gancia party’s stake may put them in front as the
most likely bidder;  but it is not out of the question that GPG may be
working with them. When we called Blake Nixon, who runs GPG’s UK
operations, he refused to comment on any aspect of the situation.

Another interesting facet of the deal is a rumour that the Takeover Panel
is investigating the events that have taken place at Dawson. One strong
possibility is that this relates to the timing of the Gancia party’s
declaration that its members were acting in concert. This was made five
days after we spotted them buying giving them time to amass 21% of the
company’s issued share capital.

Tim Cargill, a spokesman for the Panel, told citywire.co.uk: ‘The panel
would never comment on whether it was investigating a matter.’ But he
added: ‘A key concept of the Code [on Takeovers and Mergers] is the
concert party and if somebody came to us saying this aspect of the code
had been breached we would clearly have an obligation to investigate.’

The Gancia party is links to Luigi Giribaldi, a veteran Italian corporate
raider with interests in Italian cashmere businesses. Giribaldi is
currently under investigation by the Italian authorities for alleged
market manipulation. The deal in question followed a similar pattern to
the Gancia party’s activities at Dawson.

Paul Munn and Mark Cubitt, chief executive and finance director
respectively of Dawson, were unavailable for comment when we called.

In a busy day for GPG, it also announced 84% acceptances for its £70
million cash bid for Staveley Industries (SVY), a £29 million support
services firm.

The acceptances of the Staveley bid are merely symbolic of a victory it
won on 14 September when the offer became unconditional after the Staveley
’s independent directors recommended it to shareholders. At this point GPG
already had valid acceptances for nearly 70% of the share capital. Nixon
has also been appointed chairman of the company, taking over from Graham
Wilson.

Today’s announcement also revealed that the balance of Staveley shares
held by the public has fallen to less than 25%, which will lead to the
cancellation of the company’s listing.

Investors in Staveley who have not yet accepted the offer but wish to do
so are asked to return the form as soon as possible to Computershare
Bristol (0870 702 0000).

And GPG is stake building again in Time Products (TIP), a £51 million
distributor of handbags and branded watches, and now owns more than the
strategically significant 10% mark.
©2000 CityWire.co.uk

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