16 AUGUST 1997, Page 24

Merger makers and . . .

THERE is nothing like a nice chummy merger. Just think of the economies of scale. You can probably manage with fewer directors, though the ones who stay will want to be paid more because the business has got bigger. At the top of the heap, you will require incentives of every kind and can afford the consultants who will dream them up. The customers will have the bene- fit of buying all of the merged companies' products from the same shop — that is, if they want them all, and if you haven't shut the shop as a measure of economy. Sensible restructuring provisions, taken now, will enable you to show improving earnings later. Above all, your business ought to be big and ugly enough to force troublemakers to think twice before taking you on.