MR PETER Goulandris, brother in law of Dr Tony O'Reilly, has paid almost £23 million to increase his stake in Waterford Wedgwood from 2.6 per cent to 6.2 per cent. Mr Goulandris exercised an option to buy 26.5 million Waterford Wedgwood from the Morgan Stanley Leveraged Equity Fund at 85.9p each.
But Fitzwilton, the industrial holding company in which Dr O'Reilly, Mr Gouldandris and their associates have effective control, has not exercised an option to acquire the remaining 3.7 per cent held by the Morgan Stanley fund. This option - as with that held by Mr Goulandris - expired at the end of March.
Fitzwilton is not precluded, however, from bidding for the Morgan Stanley stake at a later date, and it is expected that Fitzwilton will buy the remaining Morgan Stanley stake in Waterford Wedgwood once the expected sale of half its Wellworth's supermarket chain to Safeway is completed.
Morgan Stanley, through its leveraged equity fund, was part of the original group, with Dr O'Reilly and Fitzwilton, which effectively rescued Waterford Wedgwood from collapse in 1990. At that time, Morgan Stanley took a 15 per cent stake in Waterford Wedgwood as part of the restructuring which saw the American bank, Fitzwilton and a group of American investors take a combined 29.9 per cent of Waterford Wedgwood through the Shuttleway investment vehicle.
But Morgan Stanley has a policy of not holding on to its investments for longer than five years and will be a willing seller of its remaining 3.7 per cent stake, especially as its initial investment in Waterford Wedgwood was at 37p per share. Over the past two years, the bank has been gradually disengaging from Waterford Wedgwood by selling its share either directly to Dr O'Reilly and his in laws or to Fitzwilton.
Mr Goulandris, whose sister is Ms Chryss Gouldandris, Dr O'Reilly's wife, made his latest £23 million investment through his wholly owned investment company, Araquipa International. In December 1995, Dr O'Reilly, Ms Goulandris and Mr Gouldandris combined through Albany Hill Investments to acquire another 3.7 per cent stake from Morgan Stanley for £18.3 million (55p per share). Mr Goulandris owns 40 per cent of Albany Hill, Dr O'Reilly 50 per cent and Ms Goulandris 10 per cent.
Three months previously, Fitzwilton, in which Dr O'Reilly has a 14.6 per cent stake and Mr Goulandris 12.4 per cent, paid £17.9 million for another 3.7 per cent of Waterford Wedgwood held by Morgan Stanley.
In its statement to the Stock Exchange, Waterford Wedgwood said that Fitzwilton's direct interest in the company is 12.79 per cent, although the industrial holding group is described as "controlling" 16.3 per cent of the Waterford.
A spokesman for Fitzwilton said that the company holds voting rights over shares in Waterford Wedgwood beneficially owned by other investors, thought to include Mr John Kluge and Ms Ann Getty.
Since Fitzwilton, Morgan Stanley and the various O'Reilly linked interests rescued Waterford Wedgwood from near collapse, the crystal and china group has staged a remarkable recovery and last week reported a 24 per cent increase in pre tax profits to £34.9 million.
