Christian Salvesen shares up after bid approach

Source: Supply Chain Digital

Date :25/09/2007 17:22:49

Shares in UK logistics service provider have climbed by 28 percent after the company confirmed that it had received a takeover approach.

Undisclosed

Salvesen have yet to reveal the bidders, but analysts are tipping them to be Wincanton, a supply chain specialist, along with Deutsche Post.

The firm was valued at £137 million at the start of trade today, following a 20 percent fall in its share price since the start of the year.

In a short statement made today on its website, Salvesen said:

“The Board of Christian Salvesen notes the recent movement in its share price.

“The Board confirms that it has received approaches from two parties which may or may not lead to a recommended offer for the Company. The indicative offer proposals received by the Board are subject to a number of pre-conditions.

Negotiations

“The Board is currently continuing discussions and will provide an update to shareholders in due course. There can be no certainty that a formal offer for the Company will be forthcoming or as to the terms on which any offer might be made.”

Salvesen has been put under pressure by increased competition recently, and has suffered due to large start up costs on distribution deals with Goodyear Dunlop and Continental.

September 25, 2007

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