UFO Info Week-End

Watmoughs has consistently argued that it would be best placed to realise value for shareholders

Watmoughs has consistently argued that it would be best placed to realise value for shareholders if it remained as an independent company.But few shareholders believed that the management team was strong enough to replace chief executive Patrick Walker, who came back into the job from semi-retirement last year, when he steps down.. Analysts have long argued that Quebecor would have to raise its bid in order to win approval. However, many thought that an offer around 290p a share would be enough to win the contest. Watmoughs’ share price has traded above 257p – the level of Quebecor’s offer – ever since the bid was first announced.The arrival of a white knight surprised many observers. Shares in Watmoughs surged 46.5p to 320p as the company announced that it was in talks with an unnamed bidder which could make a cash offer of “substantially” more than 300p per share. Quebecor’s offer stands at 257p.
The identity of the bidder remains a mystery. Analysts suggested that American printers RR Donnelley & Sons and World Color were the most likely candidates.

Roto Smeets de Boer, a Dutch firm, was also linked with Watmoughs but denied that it had made an offer.Quebecor pointed out that its bid was still awaiting regulatory clearance and that it would “clarify its position” once the Office of Fair Trading and Department of Trade and Industry had ruled on the bid. The battle for control of Watmoughs took a new twist yesterday as the printing group, which has been resisting a pounds 188.3m hostile offer from Canadian rival Quebecor, announced that it was in talks with a potential white knight. He hinted that BT would ask shareholders for the power to make share buybacks at the annual meeting in July, but insisted no decisions had been taken.The company’s residential customer base grew by 10,000 lines in the last quarter, despite growing competition from cable companies. Losses from the company’s expanding European operations were running at pounds 300m a year..

BT will shortly begin two home trials offering much faster Internet access through its existing copper local network.Sir Peter said talks were continuing with several US operators, but he said there were “no discussions” underway with Cable & Wireless. The Department of Trade and Industry looks set to announce the lifting of the ban in 2000, a year earlier under the previous government’s policy.”It is extremely unlikely we’ll be squirting television channels down our wires,” said Sir Peter, adding that the technology had moved on since BT had talked of investing pounds 15bn to bring fibre-optic cable to every home in the country. British Telecom has abandoned hopes of offering mainstream television channels down its telephone wires, in favour of a drive to improve Internet services for home computers. The decision, confirmed yesterday by Sir Peter Bonfield, BT’s chief executive, came as the company revealed a 12 per cent rise in profits between October and December, to pounds 1.02bn.
Sir Peter gave the clearest signal yet that BT is no longer interested in using its network to offer entertainment programmes, despite the long- running campaign to end the Government’s broadcasting ban. BT said Sir Iain would stay on as non-executive chairman until his contract expires in 2000, but that he would also explore outside interests. He is vice chairman of Royal Bank of Scotland and a board member of Mobil.

Sir Iain, who is 55, will receive an annual pension of pounds 281,000, along with a reduced salary, without bonuses, which has yet to be decided by BT’s pay committee. In the year to last April he was paid a basic salary of pounds 485,000, plus an annual bonus of pounds 185,000. However Sir Iain has for several years paid his cash bonuses to The Princess Royal Trust for Carers.. He left Emap after 25 years after a simmering rivalry for the top job with chief executive Richard Miller.Outlook, page 23. Sir Iain Vallance is to relinquish his role as executive chairman of British Telecom from August, moving to a part time position with the company after more than 10 years at the helm.

“I’m not saying anything.”Mr Arculus’s departure follows shortly after the news that Stephen Grabiner, who runs United’s regional and consumer titles, would be leaving to take up the job of chief executive of British Digital Broadcasting (BDB), the television group.News of Mr Arculus’ departure pushed United’s share price down 26p to 692p But analysts said this was an over-reaction. “He hasn’t been at United long enough to make a difference,” said one.Mr Arculus has a contract which ends in April 1997. His pay has never been disclosed, but his annual salary is believed to be well above the pounds 360,000 he received while at Emap. Some industry sources suggested his payoff could be as high as pounds 1m, although a company spokesman said negotiations were still continuing.The departure prompted some in the industry to suggest that Mr Arculus is difficult to work with.