Waterford gets green light to buy Royal Doulton

Ian Guider

At a second extraordinary general meeting of shareholders yesterday connected with the E100 million takeover of the historic Royal Doulton china brand, the overwhelming vote was in favour of the takeover, announced last October.

Last month, shareholders approved the 100m rights issue to fund the deal. Waterford agreed a 12p a share deal with Doulton, which is being funded through a heavily discounted rights issues.

Shareholders were offered five new shares for every three they already hold at 6c per share.

The company also announced some positive trading figures yesterday.

Following three difficult years, particularly in the key American market, group sales in December were 2% ahead. This increase follows a 3% rise in November and indicates that the company has had a better-than-expected Christmas trading period.

The figures also come following reports by various retailers that the Christmas trading period was the most difficult in years.

Many retailers were forced to slash prices in the run up to Christmas to lure customers, but most shops were reporting poor sales.

Waterford Wedgwood troubles have persisted for a number of years with the luxury goods sales declining. The downturn has seen the Irish company, which has huge debts, forced to address its cost base.

This has resulted in thousands of job losses at its British factories, with production outsourced to China, and short-time for its workers here.

Shares in Waterford Wedgwood have plummeted since 2001.

Yesterday its shares were trading at 7c, compared to 22c a year ago.