Barlo offer ‘must be raised by 17m’

BARLO chief executive Tony Mullins will have to raise his initial 53 million takeover offer for the company by at least 30% — E17.6m — according to Dolmen Securities.

Dolmen analyst Stuart Draper said, theoretically, 45 cents a share for the plastics to radiator company could be seen as a fair price but said that but for Mr Mullins’ 30 cents a share offer for the company the shares would currently be trading in the high 20s and not at 34 cents a share.

“At the end of the day a price of not less than 40 cents a share would be a fair price,” he added. Mr Draper said the independent board committee of Barlo Group is still engaged with the possible MBO offer, with a view to reaching an offer capable of recommendation to shareholders.