Market report
CUSTOS
Bids, deals and takeovers have suddenly burst out all over. The new phase of merger activity began with the Monsanto USA bid for Mon- ssato Chemicals, which I mentioned last week. Since then Guthrie has entered the fray again with a bid for James Templeton. Some months ago Guthrie tried to take over the Yorkshire carpet-making firm of T. F. Firth but lost the subsequent battle to Readicut Wool. Temple- ton, another carpet maker, has also said no to Guthrie's proposition.
Next day, along came the giant Distillers company to put United Glass out of its misery. The deal has genuine industrial logic behind it because Distillers' bottle requirements are almost entirely met by United Glass. In any case, United Glass has needed a rescue act for some time: it has not paid a dividend since 1966 and ended up in the red both in 1967 and 1968. Since then Associated Television has acquired 35 per cent of Northern Songs, the company which holds the copyright to songs by Beatles John Lennon and Paul McCartney, Apr wants to get control of the company but the two Beatles, with at least 25 per cent (and possibly nearer 40 per cent) of the equity in their hands, are all set to say no. Here, therefore, is a situa- tion in which the board of a company says yea to a bid but the major assets say no.
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