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De La Rue reveals takeover approach
A "highly preliminary and opportunistic" takeover bid has been made for troubled banknote printer De La Rue, the company has said.
The potential offer for the group, which prints money for the Government, is said to be worth £750 million.
Production woes in July, believed to be linked to one of De La Rue's biggest clients, the Indian Government, caused shares to slump by nearly one third.
It is thought French rival Oberthur Technologies believes now is a good time to pounce.
De La Rue's troubles in the summer claimed the scalp of former chief executive James Hussey and have cost the group £35 million.
The world's biggest banknote printer said volumes are set to drop 20% this year following the crisis, which suspended production and a shipment of the affected banknote for two months.
The group posted a 57% rise in pre-tax profits to £69.4 million in the six months to September 25 after the hit from the production issues was offset by the sale of assets and the closure of a pension scheme. It is unclear what effect the problems will have on its full-year accounts.
Copyright © Press Association 2010
