The Standard Motor Company announced last night that they had reached agreement with Massey-Ferguson, the Canadian tractor group, for the sale of the Standard tractor manufacturing assets for the sum of £14,900,000. This includes Standard’s holding in Societe Standard-Hotchkiss, the French tractor firm.
Colonel W. E. Phillips, chairman of Massey-Ferguson, said in London last night that the purchase of Standard’s tractor assets, which have an annual capacity of 125,000 machines in England and France, would make Massey-Ferguson the largest manufacturer of farm tractors in the world.
FOUR MAJOR SECTIONS
The deal includes four major sections. The first involves the sale of the tractor assets for £14,900,000. When other items have been taken into account the Standard company’s cash resources will be increased by £12,500,000. The present arrangements between Standard and Massey-Ferguson for the manufacture of tractors will be gradually terminated, but complete disengagement will not be effected until May 1, 1961.
Until that date the Standard group may not sell tractors. Secondly, the Standard Motor Company are proposing to distribute nearly £4m. of the £12,500,000 to stockholders. This will take the form of a payment of 2s. 6d. for every 5s. ordinary stock unit held free of income tax or surtax to individual stockholders. Thirdly, Standard’s are also proposing to offer the 7,757,938 Ordinarv stock units in Standard’s at present held by Massey- Ferguson to Standard stockholders. The company have made arrangements with two City merchant banks (J. Henry Schroder and Co. and Helbert, Wagg and Co.) under which Massey’s holding will be offered on September 1 to Standard stockholders at a price of 5s. 9d. a unit in the proportion of three units for every 10 units held.
CHANGE OF NAME
Fourthly, the directors of Standard’s have decided that all the group manufacturing and trading activities should be carried out through subsidiary companies, leaving Standard’s as a holding company. It is intended therefore, to change the name of the group to Standard-Triumph International. Ltd., while the newly formed car subsidiary will retain the name of the Standard Motor Company. Proposals to give effect to the arrangements will be put to the stockholders on August 28.
Threat To Extend Morris Dispute
FROM OUR LABOUR CORRESPONDENT
Representatives of 12 unions, meeting in London yesterday, decided unanimously to recommend to their executive councils that there should be a complete withdrawal of labour from Morris Motors and British Motor Corporation stores at Cowley, Oxford.
Mr Frank Foulkes, president of the Confederation of Shipbuilding and Engineering Unions, who presided, said afterwards they had agreed that Mr F. Horsman, chief shop steward of the Transport and General Workers’ Union, whose dismissal was the cause of the dispute, had been victimized. The factory employs about 7,500. About 150 shop stewards from B.M.C. factories in Birmingham, Oxford, and Coventry, meeting in Birmingham last night, unanimously pledged support for any action their executives decide to take in support of the dispute at Cowley.
A.E.U. VOTE AGAINST JOINING STRIKE
FROM OUR CORRESPONDENT
OXFORD, JULY 23
About 2,000 members of the Amalgamated Engineering Union clocked in at the strikebound Morris Motors factory at Cowley today and were told by their shop stewards that in their secret ballot held in the factory yesterday a majority had voted in favour of staying at work. It is understood that more than 800 members wanted to strike but about 1,100 were against it.
At the Austin factory at Longbridge, Birmingham, a strike ended yesterday.
Two hundred paint shop workers who walked out over a dispute about additional labour, agreed to go back immediately pending negotiations with the management.
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