Royal Doulton of the UK is likely to issue a robust statement this week on the unexpected arrival on its shareholder register of Waterford Wedgwood, which recently snapped up a 14.9% stake in the stru…
Royal Doulton of the UK is likely to issue a robust statement this week on the unexpected arrival on its shareholder register of Waterford Wedgwood, which recently snapped up a 14.9% stake in the struggling ceramics company for 90p a share (see GlassOnline report of 25 November). Waterford said it had bought in as a defensive move aimed at deterring potential bidders for Doulton, but it did not anticipate the stake would lead to an offer unless rival bidders emerged. However, industry watchers said the move had effectively drawn attention to the value now seen in Doulton by a major competitor, and so could well have put it into play. “Merchant bankers will now be sizing it up,” said one source. The shares, which had slipped from 107p in August to 78p, rose to 88p recently and could now attract more buying. Hamish Grossart, who as executive chairman is 12 months into a drastic restructuring of Royal Doulton, said that he had a pre-arranged meeting with Waterford Wedgwood group finance director Richard Barnes and Wedgwood chief executive Brian Paterson, to discuss industry issues. “I will be taking the opportunity to seek some clarification, because I think their intentions are about as clear as mud,” he said. “As an open-minded chap I am happy to hear what they might have to say, but if what they are seeking is cooperation they don“t need a stake to do that, so there must be another reason for it. Anything they come up with will have to work for all the shareholders.” Grossart is in the process of transforming Doulton from a ceramics manufacturer into a seller of luxury branded goods.