British clothing manufacturer William Baird said yesterday that talks on a management buyout that have been in progress since May could lead to a recommended cash offer at 75 pence sterling (#1.25) per share.
Shares in Scotland-based Baird, which last year lost its key customer Marks and Spencer, rose 7-1/2 pence following the announcement to close at 68 pence.
The company owns Lowe Alpine, the outdoors clothing manufacturer which employs approximately 200 people in its plant in Tullamore, Co Offaly. In April it closed two plants employing approximately 500 people in Bangor and Newtownards, Co Down.
Baird's statement was prompted by a newspaper report that it would be taken over this week in a £90 million buyout funded by venture capitalists Alchemy.
With the loss of the M&S contract, Baird was forced to lay off 4,000 staff and produced a £92 million pre-tax loss for 1999. All Baird's ties with M&S have now been cut.
In September, Baird posted a doubling to £4.5 million of its profit before tax and exceptional items in the six months to June. It said its womenswear unit was performing well in a difficult environment but menswear was suffering. First-half turnover at ongoing businesses was flat at £155 million, while group turnover fell 9 per cent to £214 million.
