Shares in Gestetner Holdings Plc put on sixpence to 88 pence after the company accepted an improved bid from Ricoh Co Ltd, which is bidding 89 pence a time for the ordinary shares and 92 pence for the capital shares, valuing the venerable office equipment firm – remember the spirit duplicators – at ú179m. Ricoh, which manufactures many of the office automation products Gestetner distributes, owns or has rights over shares representing 43.95% of the total Gestetner shares in issue. The offers represent a premium of 46% to the closing price of 61p per Gestetner ordinary share and of 18% on 78p per capital share on July 12, the day prior to the announcement by Ricoh that it was considering making an offer. The recommendation comes despite the unassociated direc tors of Gestetner believing that the offer did not represent the full recovery potential of the group, since it was now clear its financial position was difficult. Gestetner is now in talks with its lenders to amend some of its financial covenants, which would otherwise have been breached by the end of the year. Taking that and the extent of Ricoh’s existing holding into account, the outside directors were advised to consider each of the offers reasonable. Chairman David Thompson said he was sorry Gestetner was losing its independence but the commercial logic of the Ricoh deal was strong.
