They are using a
consultant to work on the proposal. I have to see their
representative and set up a visit with our people.”
“No problem,”
Dermot reassured. “We just have to be careful. We deal with a
number of cooperatives. We don’t want the Associated Finance buyers
to find a way to cut us out of the scene.”
“Don’t worry,”
Peter said, “We can work that one out. We sell branded don’t
we?”
“Fine,” Michael
said, satisfied. “The ball is in your court Peter. Keep us
informed. Let us now move on to the next agenda item. Dorothy you
have the final item on the agenda. And anyone who wants a coffee or
tea just take it on the run.”
Dorothy waited
a minute until everyone was settled again.
“Now our
pension fund backers have come up with a good idea” she began.
There was a respectful silence as they waited.
“They have
located a public quoted company. It is called ‘Howlett Holdings.’
It is quoted on the London Stock Exchange.”
“I know that
name,” Michael said. “They trade as O’Donoghue’s, the transport
company.”
There was a murmur as the others recognized the name.
“Did they have
the float behind us in the St. Patrick’s day Parade?” Michael
asked, beginning to make connections.
“I do believe
you are right,” Dermot said.
Dorothy and
Michael’s eyes met. Dorothy could sense his disapproval; he
remembered that Ann-Marie had made a date with one of the bikers.
She hoped it would not spoil his humour for her proposals.
“ We certainly do a lot of business with them,” Dermot
confirmed, “a good efficient outfit.”
“They have held
their Stock Market quotation because Howlett Holdings were quoted
in the UK long before Irish independence.” Dorothy continued. They
are considered safe, conservatively financed, well managed, but
cautious and unexciting.”
“What is the
attraction?” Peter asked.
“Transport
Synergies are a bonus, but the real issue is the fact that Howlett
Holdings have a very valuable commodity, that is a London Stock
Market Quotation.”
“Pretty good
when you think the major Irish companies quoted on the Irish
Exchange like the Banks and Smurfit’s cannot get a UK quotation,”
John said in support.
“So if Howlett
Holdings took us over we would be on the stock market now,” Peter
threw in, tongue in cheek.
“Jesus, hold on
Dorothy,” Michael reacted, alarmed. “We don’t want to be taken
over. For Christ’s sake, we want to go public and still keep
control.”
“I know dad,”
Dorothy said quietly. At board meetings she usually called him dad
when she thought he was being an idiot, otherwise she called him
Michael.
“Tell me
daughter?” he said giving in. He could read the signs.
“Through a
reverse takeover,” John interjected.
“How much would we have to offer?” Michael asked, a little more
respectfully.
“ Its a waste of time,” Dermot said. “O’Donoghue won’t sell. We
do a lot of business with O’Donoghue. As far as I know the old man
is hanging in there. You can be sure Granddad will want to pass the
business to his heirs.”
“We have done
our research and you are well informed Dermot,” Dorothy smiled
tightly.
“ Are there other companies like this one?” Dermot
asked.
“I am afraid
not. This is a real jewel. There are clear links to our business on
the transport end and we are of the view that the stock exchange
would not block us. We can’t find anyone else especially as we need
to link in a synergistic way.”
“There are
major tax implications,” John suggested. “Both for the companies
and for the current shareholders. Transfers of shares for shares
are not subject to Capital Gains Tax. However share sales are.”
“Not to mention other inheritance taxes. My accountants have
given me a long-term tax efficiency plan. They call it wealth
management. Hence my plans to go abroad for a few years,” Michael
said grimly.”
“ What is the recommended next step
consultant to work on the proposal. I have to see their
representative and set up a visit with our people.”
“No problem,”
Dermot reassured. “We just have to be careful. We deal with a
number of cooperatives. We don’t want the Associated Finance buyers
to find a way to cut us out of the scene.”
“Don’t worry,”
Peter said, “We can work that one out. We sell branded don’t
we?”
“Fine,” Michael
said, satisfied. “The ball is in your court Peter. Keep us
informed. Let us now move on to the next agenda item. Dorothy you
have the final item on the agenda. And anyone who wants a coffee or
tea just take it on the run.”
Dorothy waited
a minute until everyone was settled again.
“Now our
pension fund backers have come up with a good idea” she began.
There was a respectful silence as they waited.
“They have
located a public quoted company. It is called ‘Howlett Holdings.’
It is quoted on the London Stock Exchange.”
“I know that
name,” Michael said. “They trade as O’Donoghue’s, the transport
company.”
There was a murmur as the others recognized the name.
“Did they have
the float behind us in the St. Patrick’s day Parade?” Michael
asked, beginning to make connections.
“I do believe
you are right,” Dermot said.
Dorothy and
Michael’s eyes met. Dorothy could sense his disapproval; he
remembered that Ann-Marie had made a date with one of the bikers.
She hoped it would not spoil his humour for her proposals.
“ We certainly do a lot of business with them,” Dermot
confirmed, “a good efficient outfit.”
“They have held
their Stock Market quotation because Howlett Holdings were quoted
in the UK long before Irish independence.” Dorothy continued. They
are considered safe, conservatively financed, well managed, but
cautious and unexciting.”
“What is the
attraction?” Peter asked.
“Transport
Synergies are a bonus, but the real issue is the fact that Howlett
Holdings have a very valuable commodity, that is a London Stock
Market Quotation.”
“Pretty good
when you think the major Irish companies quoted on the Irish
Exchange like the Banks and Smurfit’s cannot get a UK quotation,”
John said in support.
“So if Howlett
Holdings took us over we would be on the stock market now,” Peter
threw in, tongue in cheek.
“Jesus, hold on
Dorothy,” Michael reacted, alarmed. “We don’t want to be taken
over. For Christ’s sake, we want to go public and still keep
control.”
“I know dad,”
Dorothy said quietly. At board meetings she usually called him dad
when she thought he was being an idiot, otherwise she called him
Michael.
“Tell me
daughter?” he said giving in. He could read the signs.
“Through a
reverse takeover,” John interjected.
“How much would we have to offer?” Michael asked, a little more
respectfully.
“ Its a waste of time,” Dermot said. “O’Donoghue won’t sell. We
do a lot of business with O’Donoghue. As far as I know the old man
is hanging in there. You can be sure Granddad will want to pass the
business to his heirs.”
“We have done
our research and you are well informed Dermot,” Dorothy smiled
tightly.
“ Are there other companies like this one?” Dermot
asked.
“I am afraid
not. This is a real jewel. There are clear links to our business on
the transport end and we are of the view that the stock exchange
would not block us. We can’t find anyone else especially as we need
to link in a synergistic way.”
“There are
major tax implications,” John suggested. “Both for the companies
and for the current shareholders. Transfers of shares for shares
are not subject to Capital Gains Tax. However share sales are.”
“Not to mention other inheritance taxes. My accountants have
given me a long-term tax efficiency plan. They call it wealth
management. Hence my plans to go abroad for a few years,” Michael
said grimly.”
“ What is the recommended next step
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