Soviet Intervention In U.K. Take-over Move

Press, Volume CI, Issue 29745, 12 February 1962, Page 11

Soviet Intervention In U.K. Take-over Move

(N2. Press Assn.—Copyright) LONDON, Feb. 11. Russia has offered to help the textile combine of Courtaulds win its battle to prevent take-over by Imperial Chemical Industries, according to three London newspapers. Other offers of help to Courtaulds have come from Rumania, Poland, Czechoslovakia, and Jugoslavia, it was said. The Russian assistance would be in the form of the immediate clinching of a £7.000.900 deal, which Court-

aulds were currently negotiating.

The newspapers reporting the offer were the “Sunday Times,” the “Observer” and the “Sunday Pictorial.” The Soviet offer came after secret talks in Rome last week.

A Courtaulds director, Mr Frank Kearton, had three days of talks with the head of Techmashimport, Russia’s massive State-controlled buying agency (Mr Vlas Klentsov), the “Sunday Pictorial" said.

Mr Xlentsov, who instigated the meeting, told the Courtaulds director: "We are most anxious that you should win your battle to prevent the 1.C.1. take-over, and we are prepared to do all we can to help.

“Techmash import is prepared to place an immediate contract with you worth £7.000,000 for a textile plant in Latvia.” he said The factory would turn out Courtauld’s well-known fabric “Tr-icel” and back Russia’s drive to put more consumer goods into the shops the “Sunday Pictorial” said. Courtaulds were competing with Italy and America for the Latvia contract. Mr Klentsov offered to clinch the deal on the spot in Rome without further negotiations, and at the end of their talks offered Mr Kearton a handshake deal. Russian Concern The Russians were particularly worried about the take-over battle between the two giant firms Since 1958. iron curtain countries had placed orders worth £20.000.006 with the firm, and they drew heavily on Courtauld’s technical “know-how.” the “Sunday Pictorial" said" Another reason for the offer of help was that Courtaulds had established excellent relations with the iron

curtain countries in their deals.

Through these connexions, Courtaulds hope to win a big chunk of the massive Russian market in textiles. Reuter confirmed from London that talks between Mr Kearton and Mr Klentsov had been held in Rome. A spokesman for Courtaulds said in London last night: “It is perfectly true that we have been talking again with the Russians on possible further contracts to supply man-made fibre factories.”