Market report
CUSTOS
The February gold figures, which showed the best increase before loan repayments since July 1962, provided a much-needed fillip for the gilt-edged market. Final quotations on Tuesday evening showed numerous small gains.
Elsewhere the market has been quiet and steady, equities showing no particular urge to move either up or down. It is noticeable that a much smaller number of mergers and take- overs have been announced recently. Many pro- posals may be waiting for the outcome of the Board of Trade reference of Unilever/Allied Breweries and Rank/De La Rue to the Mono-, polies Commission. But two big battles remain to be settled, General Foods of New York/ Rowntree and the contest for control of City of London Real Property. The Rowntree situa- tion is pretty frustrating for all concerned. Shareholders still haven't received a definite offer from General Foods; the trustees, which- control the company with a 56 per cent stake in the equity, have hinted that they do not intend to sell at any price; and General Foods, which- has indicated that it is prepared to raise its existing bid, cannot get into negotiations with the Rowntree management. I advise General Foods to publish a good offer and then post it to shareholders. General Foods wants to avoid a fight, but in business you cannot always suc- ceed without one.
_Land Securities has produced a revised bid for City of London Real Property. The differ- ence is that the latest (ne contains much more equity, which is as it should be. City of Lon-- don Real Property does not really want to be taken over, but if it is, then it wants the same proportion of the equity as it is contributing to combined assets.. Unfortunately, even on Land Securities' latest terms, CLAP does not quite achieve parity.
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