Europe South Asia Asia Pacific Americas Middle East Africa BBC Homepage World Service Education



Front Page

World

UK

UK Politics

Business

Sci/Tech

Health

Education

Sport

Entertainment

Talking Point

In Depth

On Air

Archive
Feedback
Low Graphics
Help

Sunday, October 31, 1999 Published at 17:53 GMT


Business: The Company File

Anglo American is Tarmac bidder

Tarmac could be on the road to a takeover

South African mining firm Anglo American has emerged as the mystery £1bn bidder for aggregates group Tarmac.

The company, which listed on the London Stock Exchange in May, launched a 535p cash offer which was rejected by the Tarmac board on Friday. This followed an offer of 500p which was rejected earlier in the week.

Tarmac revealed the news of an approach after its shares jumped 10%. Following the announcement, its shares surged 45% on the week to close at 512.5p on Friday.

The Leicestershire-based firm said the offer undervalued its business and future prospects. Chief executive Roy Harrison said: "We want to be involved in the industry consolidation from a position of strength. We don't want to be picked off."

Tarmac's major shareholder, Phillips & Drew Fund Management (PDFM), is believed to have backed the rejection.

Anglo chairman Julian Ogilvie Thompson recently said that he had a war chest of £3bn for acquisitions. Anglo may now hold talks directly with PDFM, which owns 19% of the company.

If its takeover attempts succeed, it would become one of the world's biggest building materials companies.

Anglo would merge Tarmac with its Tilcon building materials operation.

Anglo has reportedly retained advisor Warburg Dillon Read to help in its takeover campaign.

Tarmac earlier this year split off its construction arm into a separate company called Carillion.

Last month Tarmac bought up key assets of Marley Paving for £26m to set up a separate division called Tarmac TopPave.

And this month it bought London-based asphalt business Situsec for £9.45m.



Advanced options | Search tips




Back to top | BBC News Home | BBC Homepage | ©


The Company File Contents


Relevant Stories

16 Mar 99 | The Company File
Tarmac to split in two

14 Dec 98 | The Company File
Tarmac paves way for merger





Internet Links


Tarmac


The BBC is not responsible for the content of external internet sites.




In this section

Microsoft trial mediator welcomed

Vodafone takeover battle heats up

Christmas turkey strike vote

NatWest bid timetable frozen

France faces EU action over electricity

Pace enters US cable heartland

Mannesmann fights back

Storehouse splits up Mothercare and Bhs

The rapid rise of Vodafone

The hidden shopping bills

Europe's top net stock

Safeway faces cash demand probe

Mitchell intervenes to help shipyard

New factory creates 500 jobs

Drugs company announces 300 jobs

BT speeds internet access

ICL creates 1,000 UK jobs

National Power splits in two

NTT to slash workforce

Scoot links up with Vivendi

New freedom for Post Office

Insolvent firms to get breathing space

Airtours profits jump 12%

Freeserve shares surge

LVMH buys UK auction house

Rover - a car firm's troubles