Alexander Dennis considering cash offer for rival bus maker Optare
Bus and coach manufacturer Alexander Dennis is considering a cash offer for its rival Optare (LON:OPE).
It didn't disclosed further details of the potential offer.
The statement comes only days after Optare announced that Ashok Leyland, part of India's Hinduja Group, is planning to raise its stake in Optare to 75.1 per cent through a £4 million share placing.
ADL said today it has written to the chairman of Optare and has requested information on the business of Optare in order to assess whether or not ADL might be prepared to consider making an offer for the entire issued share capital of the group.
Ashok Leyland acquired a 26 percent stake in Optare last July. It has held talks with the Takeover Panel, which has ruled that ADL has until January 25 to declare its intentions regarding an offer for Optare.
"This announcement does not amount to a firm intention to make an offer and, accordingly, there can be no certainty that any offer will be made. Any offer would be in cash," ADL said.
Falkirk-based ADL employs around 2,000 staff in the UK, continental Asia and North America and manufactures a wide variety of buses and coaches across its Dennis, Alexander and Plaxton brands.
Optare is based in Leeds, employs over 800 staff at three sites and builds primarily single-decker buses. A new double-decker, following on from a long tradition of iconic designs, is currently undergoing trials.
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