De La Rue feels the pressure from suitor

A French takeover suitor stepped up pressure on British banknote printer De La Rue yesterday by calling for a clearer picture of the production problems which shook the company last year.
By The Newsroom
Published 4th Jan 2011, 20:35 BST
Updated 4th Jan 2011, 20:35 BST

Paris-based Oberthur, which revealed last month it had tabled an offer proposal for De La Rue worth 900m, said the firm needed to provide full details of the issues which arose with a "principal customer", understood to be the Reserve Bank of India.

Oberthur, which already has 570 staff in the UK, said its indicative offer, which was refused by De La Rue on the grounds that it undervalued the company, still stands and a deal would help restore the firm's "damaged" reputation.

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De La Rue's share price has plummeted by more than a third in recent months following the production problems that caused its chief executive James Hussey to resign and cost the group 35m to date.

The impact on full-year accounts is still unknown.

Jean-Pierre Savare, president of Oberthur, said: "We believe there are crucial questions that need answering from De La Rue in relation to India and the status of De La Rue's relationships with its existing customers, in the light of the continuing uncertainty surrounding the company and its future prospects.

"We are extremely serious in making our approach and we believe a combination of De La Rue and Oberthur would provide the catalyst for restoring De La Rue's standing and reputation, and help De La Rue deliver the high quality production and service that customers demand."

Related topics:ParisIndia