Mergers and Mysteries
The merger of UNITED DAIRIES With COW AND GATE can no doubt be justified on technical grounds, the first acquiring an important outlet• and the second much-needed cash and a wider spread of interests, but as one who has favoured Cow and Gate as a special growth share I feel unattracted by the new set-up. There are talks of other mergers, for example, a take-over of BRITISH GLUES by MONSANTO. This has been denied, but why do British Glues 4s. shares re- cover smartly from any setback? Their price is once again over 20s. to yield under 4 per cent. on the last dividend of 20 per cent. paid out of earnings of 45 per cent. Something appears to b `going on.' Another take-over rumour is assn ciated with BRITISH OXYGEN, whose shares haV lately been a rising market. This, however, can b merely in anticipation of good results to 1] announced in five weeks' time for the year endin September. An increase in last year's dividend C 10 per cent. is expected in the market. At 53s. 6t the shares would certainly rise if 15 per cent. wet paid. A take-over talk which I can positively den is that of CUSSONS AND SONS, whose 2s. 'A' share have recently risen to 8s. to yield 6 per ce..
UNILEVER are not interested, but the market wt pleased by the increase in dividends equivalet to 24 per cent. on an annual basis. Trading result since the end of the year have been enlarged h the inclusion of those of PC Products, makers ( the '1001' carpet cleaner,-and in due course mite: higher dividends will be seen.
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