Waterford shares fall after Doulton takeover plan

SHARES in Waterford Wedgwood fell 33% yesterday after the crystal and ceramics manufacturer twice surprised the markets - with a profit warning and with plans to buy a troubled British rival.

The share price tumbled to just 8.7c after shareholders at the company’s agm heard the proposed takeover of chinaware manufacturer Royal Doulton would be financed by a €100 million rights issue.

Chairman Tony O’Reilly said the Royal Doulton deal would transform the company and allow it to use up spare capacity at its Wedgwood manufacturing operations in Britain. This would deliver a €150m uplift in sales without significantly adding to the company’s fixed cost base, he said. The combined operation would benefit from greater efficiency and a cost base that matched low-cost competitors in China.