The Anglo-Irish crystal and bone china group Waterford Wedgwood is set to increase its stake in Rosenthal, the German china and porcelain company.
Waterford paid UK 3 million for a 9.1% stake in Rose…
The Anglo-Irish crystal and bone china group Waterford Wedgwood is set to increase its stake in Rosenthal, the German china and porcelain company. Waterford paid UK 3 million for a 9.1% stake in Rosenthal earlier this year and also took an option to increase its shareholding by 15% at varying dates and prices over the next four years. It has now agreed to be the main underwriter of a UK 13.4 million rights issue by Rosenthal, a move which could increase the group“s stake to as much as 47%. In the issue, Waterford is underwriting stock worth UK 11.6 million. Depending on the take-up of the rights, it may have anything from 12.5% to 33% of the increased capital. Assuming the exercise of its option, it will end up with a minimum of 25% or a maximum of 47% of Rosenthal. Rosenthal losses for 1996 have been reduced to DM 4.6 million and provisions of DM 40 million have been established for a three-year rationalisation programme. The group said in a compulsory statement that turnover was down at DM 320.4 million in 1996 from DM 330.4 million. Waterford Wedgwood is expected to disclose a good increase in Waterford profits to about UK 35 million, up from UK 28.1 million. The restructuring programme at Rosenthal will involve cutting the workforce by around 600 employees from its present 2,200, management board chairman Otmar Kuesel announced last week.