Westland head reveals revised offer

Press, 29 January 1986, Page 10

Westland head reveals revised offer

NZPA-Reuter London The board of the British helicopter-maker Westland, cleared the way yesterday for an Americanled rescue. The chairman, Sir John Cuckney, disclosed details of a new deal from United Technologies Corporation, owner of the American helicoptermaker Sikorsky, and Fiat, of Italy, and said the board had wholeheartedly recommended that shareholders accept it. The proposals, which would be put to a special meeting of shareholders on February 12, could be approved by a simple

majority, he said. A majority of 65 per cent of shareholders supported the board in backing a previous U.T.C.-Fiat measure but supporters of a rival all-European proposal had voted it down on a technicality requiring it to win 75 per cent of votes. “Westland remains in a precarious financial condition and urgently needs a capital reconstruction,” Sir John said in a circular to shareholders. The previous U.T.C.Fiat offer had included the creation of redeemable preference shares, which offer better guaran-

tees of dividend payments but, under company law, can be issued only with the support of 75 per cent of shareholders. In the new proposal Investors will be offered irredeemable preference shares that do not carry the same condition. The new proposal increases the stake existing ordinary shareholders will hold in the company from 64 per cent to 79 per cent of shares. Existing shareholders will be asked to put up £35.5 million ($94.07 million), the rescuers, £19.8 million ($52.47 million).