Skinflint's City Diary
Scuffles for control of the embattled Ashbourne Investments not only continue, but now look to include a new contender. Rows about the company have now continued for eighteen months and it began to look as if the City Take-over Panel was finally about to bring it to a conclusion, no matter how unsatisfactory, when it all threatened to return to square one. After lengthy and agonising heart-searching, the Panel was about to lean on Bra ndts to cough up some cash for shares in Ashbourne, Brandts, quite apart from being in the throes of the financial reconstruction it has precipitated at Grindlays, was not keen. It has been desperately trying to extricate itself from the whole deal.
It only got involved because Brandts was going to be the one to make the offer for Ashbourne (promised in November, 1973) on behalf of Crest International Securities and Corporate Guarantee Trust. But those two acquired forty-three per cent of Ashbourne • before William Stern's empire went under thus removing the financial backing for the acquisition. The Panel called Crest/CGT any number of rude names for not bidding for the rest of the shares as the Code commands, but after the demise of Wilstar they were skint.
The Panel was peeved and while deliberating lengthily prevented the two companies exercising control. Ashbourne directors also disliked the consortium people. Then last week, just as the Panel was due
to publish, in steps Doloswella Holdings, tea and rubber cropper in Ceylon, and starts talking to Crest and CGT, and getting a benevolent nod from the Panel.
Mysteriously, hardly had talks begun for Doloswella to buy Crest and CGT out and make an outright bid than news of the prospective deal and the Panel's approval leaked to the press. Rather crossly, Ashbourne directors and Slater Walker who is advising them, found them not being consulted fully about a deal they did not like the sound of. They put out a statement (which got no coverage) to say they are not negotiating. True, but so far they have not been given the option.
In strictly logical terms Doloswella bidding for Ash bourne is a bit like a terrier trying to rape an elephant, but don't be fooled. The Honourable Gerald Lascelles is chairman, and Nick Oppenheim's Kellock Holdings is getting a 26 per cent stake. So the ability to raise the cash will not be a handicap. Everything however is going into abeyance for four weeks to allow Mr Oppenheim, who has been conducting the Ashbourne negotiations, to go away on honeymoon.
In the meantime the Panel could and should publish its report and recommendations anyway and so finally get court clearance so 'that everybody can stop fussing about being in contempt of court since there is so much outstanding litigation. Not that either the Panel's report or the court cases will reveal all the details.
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