Page 63 - The Case Lab Book
P. 63
15 September
Tom,
Just an update following our meeting on the Continental situation. Our
refusal to stock their products on anything other than what we see as fair
commercial terms looks as though its forced them to change their position. It
appears, as we feared they would, that they have now increased their
September 10% shareholding to 13.13%. We have to assume that they are
on track for a full takeover bid for the company.
It’s unlikely that there is any comfort to be had in accepting their claims that
they regard this stake as a long term holding (even though they have a 20%
stake in one of our direct competitors) or that they see it as simply a way to
force us to distribute their products.
We have to hold fast and defend.
I’ve prepared a list of actions to augment the ones already in place which
should be considered especially with these increasing rumours in the press
that other companies which already have stakes in the industry, are also
interested in us.
John
