BIG U.K. MERGER

Press, Volume CII, Issue 30121, 3 May 1963, Page 14

BIG U.K. MERGER

£43m Bid For Tootal

(N.Z J?. A.-Reuter—Copyright)

LONDON, May 1

A £43m “marriage" between two giant cotton combines, which will put new life into Britain’s struggling textile industry, was proposed last night, the “Daily Mirror” reported today. The £32m English Sewing Cotton group was making a take-over bid for the £llm Tootal Company—famous for ties, shirts and handkerchiefs.

If the deal went through the merger would create the biggest empire in cotton, the “Dally Mirror” said. The deal is being backed by Imperial Chemical Industries and Courtaulds, the two giants which dominated Britain’s man-made textiles industry.

The two companies employed more than 11,000 workers in Britain. Tootal had six main factories in Manchester and Bolton, both in Lancashire, and had interests in paper and plastics, the newspaper said. , The “Daily Mirror” quoted the _ chairman of English Sewing '(Sir Cyril Harrison) as saying that Courtaulds and 1.C.1. had each earmarked £sm to help the new group.

"Big Interest”

He said the two companies were backing the merger to the tune of £lom “because they have a big interest in a healthy textile industry,” the “Daily Mirror” added. The “Financial Times” said today: “The fact that 1.C.1. and Courtaulds, lately fighting cat and dog, are acting in concert is the picturesque feature of the sponsorship of the English Sewing CottonTootal merger.”