CUSTOS
Market report
Electricals have hogged the limelight again this week. English Electric has countered Plessey's bid by asking GEC to take it over. Thus the outstanding question is whether GEC (which has recently gobbled up AEI) plus English Electric will be too large for anyone's good in the home market—although the new group would only be number eight in a table ranking the world's electrical companies by size.
The view of the Industrial Reorganisation Corporation will be decisive. It is thought to favour the GEc/English Electric link-up. Hence the feverish activity elsewhere in the industry (mirrored by wild gyrations in share prices). There is a clear need to reorganise if the new colossus is to be competed with effectively. Plessey, whose £275 million bid for English Electric started the whole thing off, is as vulnerable as anyone. The shares became an extremely active market on Tuesday, rising 3s 3d to 38s on rumours that Thorn would make a bid for the company. Thorn later denied any such intention. At the same time Hawker Siddeley was up on the thought that Plessey would want to do a deal in its direction. Reyrolle Parson, GEC/English Electric's only competitor at the heavy end of the industry,
• put on Is 9d to 81s 6d. Westinghouse Brake and Racal were also wanted on hopes of bids. Of- course some of this buying is of the pot- luck variety: but there are great changes afoot in the electrical industry Sand the beneficiaries will not be just English Electrical shareholders.
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