Scottish bus and coach manufacturer Alexander Dennis Ltd (ADL), has backed out from launching a bid for rival Optare Plc after Ashok Leyland, the flagship company of the London-based Hinduja Group, refused to sell its stake in Optare.
Ashok Leyland, one of the largest bus manufacturers in the world, told Alexander Dennis that its 26 per cent stake in Optare was not for sale ''to anyone at any price.''
After being told by Optare's financial adviser, Cenkos Securities, that Ashok Leyland, Optare's largest shareholder, has no intention of selling its stake in Optare, the board of Alexander Dennis concluded that it would not pursue further its possible interest.
Falkirk-based ADL, the largest bus builder in the UK had requested information from Optare in order to find out whether ADL can make a bid for the whole company.
According to the UK Takeover Panel rules, ADL has until 25 January 2012 to make a firm offer or will not be allowed to launch another offer for the next six months.
ADL's interest in Optare could have potentially threatened Ashok Leyland's plan of hiking its stake in Optare by acquiring an additional 49.1 per cent for over Rs30 crore, taking its total stake in the British bus maker to 75.1 per cent. (See: Ashok Leyland raises stake in British bus maker Optare to 75.1 %)