Portals gets approach from unnamed bidder
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.PORTALS, the company that makes paper for banknotes and teabags, has received a takeover approach, prompting a 15 per cent jump in its share price, valuing the company at more than pounds 500m, writes Paul Durman.
Speculation on the identity of the potential bidder focused on De La Rue, the world's largest banknote printer and a leading customer for Portals' paper. Another candidate was Arjo Wiggins Appleton, the Anglo-French paper maker.
Portals, forced to reveal the approach by a sharply rising share price, recently reported profits for 1993 of pounds 31m, a 22 per cent increase.
David McCrossan, a paper and printing analyst at Kleinwort Benson, said he would be surprised if the bidder turned out to be De La Rue as that company had always insisted it did not want to move into paper-making.
However, De La Rue is the only security printer among its key UK and international competitors not to be vertically integrated with its own paper-making operation.
Les Cullen, finance director at De La Rue, said the company did not comment on bid rumours. 'We know Portals extremely well,' he said. 'We enjoy an excellent relationship with them.'
Asked about the company's previous disavowal of interest in paper-making, Mr Cullen said: 'It may have been said in the past. I'm not sure I've heard it said recently.'
Thoughts of a bid from De La Rue initially cut its share price from 885p to 872p, though it later recovered to close at 878p. Arjo Wiggins ended the day at 297p, down 1 1/2 p.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments