Doulton takeover gains momentum

THE proposed takeover by Waterford Wedgwood of chinaware manufacturer Royal Doulton yesterday received a boost after the British competition watchdog said it would not stand in the way of the deal.

Shares in the troubled luxury goods group responded to the news by gaining 7%.

The Office of Fair Trade (OFT) told the stock exchange the proposed deal, which has yet to be agreed by the two parties or approved by shareholders, did not constitute “a relevant merger situation” under the terms of Britain’s Enterprise Act.

The OFT had not been expected to block the deal but observers yesterday’s said the announcement removed an element of uncertainty from the transaction.

Waterford shares added half a cent to close at 7c.

In a separate development yesterday, the company posted to shareholders details of its upcoming extraordinary general meeting, which will take place in Dublin’s Shelbourne Hotel at 10am on December 14.

The meeting is necessary to approve resolutions relating to the rights issue that will be used to fund the Royal Doulton takeover, if the deal proceeds.