Wedgwood woos Royal Doulton
TWO of the greatest names in the British china industry look set to merge after Waterford Wedgwood said it is in talks to take over Royal Doulton, the ailing Stoke-on-Trent porcelain maker.
Waterford will offer 12p for each Royal Doulton share, valuing the company at just short of £40m. The Irish company also said it is raising €100m (£69m) through a deeply-discounted rights issue to fund the deal.
Waterford already has a 21.6% stake in Royal Doulton and Sir Anthony O'Reilly and Peter Goulandri, chairman and deputy chairman of Waterford, own 3.99%.
Over the past five years Royal Doulton has made losses totalling £100m, seen its sales halve and slashed its workforce.
Waterford said it had completed due diligence on Doulton 'but certain other matters remain to be resolved'.
O'Reilly told shareholders at today's Waterford annual meeting: 'The possible acquisition of Royal Doulton would transform Wedgwood.
'The benefits of such a deal are immediately apparent. We could add Royal Doulton's revenues to our top-line sales without greatly increasing costs.'
