British dredging's gold appeal
Nephew Wilde
When one buys a share with the thought only of capital appreciation or income, it is all too easy to forget that one, in fact, is buying a stake in a company and as such must bear some responsibility for what it does. Now, last week a group called Counter Information Services drew attention to the working conditions of Consolidated Gold Fields' black labour force in South Africa. They also listed in an anti-report (produced to look like Consolidated's own annual report — only with a black cover) shareholders in this company. Amongst them were institutions and individuals such as the Church of England, the Trustees for Roman Catholic Purposes, the Salvation Army, Mr Enoch Powell, Lord Widgery and many others.
Now I have tried to discern the motives of Counter Information Services (do they have a vested interest in mounting a bear raid on shares?) but have not received any meaningful answers. Nor do I know who finances them.
Yet this is really incidental — and who am I to cast judgements, holding as I do — Kinross. What does interest me is the implication of certain remarks by Consolidated's chairman, Mr McCall, at a recent rowdy annual meeting. He attempted to answer his critics over the colour business and drew attention (presumably to console worried sharehol ders) to the group's interests outside South Africa — particularly in this country. Now following this particular train of thought it seemed to me clear that Mr McCall would like to increase the group's activities.
So I telephoned my stockbroker, Wotherspool. "You remember I had Amey Group in my portfolio some months ago," I questioned him. "Well I seem to remember that it got involved in a three-cornered battle."
" Umph," grunted Wotherspool, who never likes to be posed snap questions, "just let me turn back my file . . . ah, yes, here we are, Amey bid for British Dredging but Consolidated Goldfields made a successful takeover of Amey."
"Well, Wotherspool," I eagerly asked, " does Consolidated hold any British Dredging as a result of that fight?"
The answer as I had half guessed was that Consolidated holds about 12 per cent of British Dredging.
Now to my mind if Consolidated is setting out on an acquisition programme in this country, which would seem a wise course of action, then British Dredging seems an obvipus target. I know its chairman has a large holding but I do not feel that this spoils my case. Anyway as a share for appreciation on fundamental grounds I am happy to hold British Dredging which has excellent trading prospects.
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