Mayflower sails in with improved offer for Dennis

ENGINEER Mayflower today delivered what could be a knockout blow in the two-way fight for Dennis Group, when it increased its cash bid for the bus chassis maker to 475p-a-share from 450p.

The move comes a day after the bid timetable was suspended by the Takeover Panel which is deciding whether to refer either of the bids to the Monopolies and Mergers Commission.

The new deal values Dennis at GBP 268.9 million and leaves Henlys' increased combined cash and paper offer trailing at 447 1/2 pa-share or 6% below the value of the Mayflower offer, as Henlys' shares fell 8p to 425p. Dennis shares jumped to 470p from 458 1/2 p while Mayflower remained at 138 1/2 p. As Mayflower chief executive John Simpson unveiled his probable killer punch, he announced more woe for Henlys with the news that Mayflower had built up a 20.8% stake in Dennis after two large institutions sold their holdings. Mayflower was understood to be busy buying further shares in the market and Simpson hinted that the bid could be all over by the close of business today. However, Henlys put out a holding statement, urging shareholders not to take any action while the board reviewed its options. It said it would "announce its intentions in due course," and a spokesman for Dennis said the group would await Henlys' final response before reaching a conclusion itself on whether to recommend the new bid. Henlys, however, insisted a combination with Dennis still made commercial sense, "giving shareholders the chance to benefit from the creation of a globally competitive bus and coach business".

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