Rover says strong pound may delay return to profit
Article Abstract:
Rover Group, a UK firm engaged in auto production, through its chairman Walter Hasselkus, announced that the company will be able to return to profitability only beyond year 2000. The delay is largely due to the strengthening of the pound, which was trading at 2.7983 marks to the pound as of morning of October 20, 1998. To save as much as $340 million to $510 million per year, the company will be sourcing some of its needed components outside UK. It may also engage in job cuts as another cost-saving measure. The company's forecast of its financial recovery was only based on an exchange rate of around 2.40 to 2.45 marks to the pound.
Comment:
Announces that the company will be able to return to profitability only beyond year 2000 due to the strengthening of the pound
Publication Name: Wall Street Journal. Europe
Subject: Business, international
ISSN: 0921-9986
Year: 1998
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Stagecoach to buy stake in Virgin rail
Article Abstract:
Stagecoach Holdings PLC, a diversified transportation firm, will acquire a 49% stake in Virgin Rail for $230.7 million plus 20 million pounds sterling in assumed debt from its venture-capital shareholders. Subsequently, Virgin Rail parent Virgin Group, will up its stake in the rail from 41% to 51%. Meanwhile, Stagecoach CEO Mike Kinski said his firm and Richard Branson's Virgin Group are open to the idea of Virgin Rail's flotation in the medium- to long-term. The acquisition helps Branson evade a public stock offering at the same time permits five Virgin Rail venture capitalists a scheduled exit from the 59% stake they had held.
Comment:
Will acquire a 49% stake in Virgin Rail for $230.7 million plus GBP20 million in assumed debt from its venture-capitalists
Publication Name: Wall Street Journal. Europe
Subject: Business, international
ISSN: 0921-9986
Year: 1998
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Mayflower claims victory in battle for Dennis Group
Article Abstract:
Mayflower Corp, a UK engineering group, succeeds in taking control of Dennis Group PLC, a UK vehicle chassis maker, after a bidding battle that started in July 1998 with a UK bus-bodies manufacturer, Henlys Group PLC. Dennis Group's shareholders, which hold 20.6% stake of the company, gave their approval to Mayflower's unconditional cash offer of 268.9 million pounds sterling or $457.1 million. This gives Mayflower, which already owns 29.9% stake of Dennis Group, the right to speak for 50.5% of Dennis' shares.
Comment:
Will take control of Dennis Group with an unconditional cash offer worth $457.1 mil
Publication Name: Wall Street Journal. Europe
Subject: Business, international
ISSN: 0921-9986
Year: 1998
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