News

TDG has stressed that the offer it received from hedge fund Laxey this week is at an early stage and discussions are "ongoing". David Hindson, strategy and marketing director at TDG, says it is very much "business as usual" at the firm. He points to a contract renewal with Sainsbury's, which extends its operation of the supermarket's general merchandise national distribution centre at Rugby until 2009.

A TDG statement adds: "There can be no certainty that the approach will result in a  formal offer being made for the company, even if the preconditions are waived or satisfied." Preston Rabl, Laxey chairman, says: "We have been investors in TDG for over a year and are excited about the opportunity to back TDG, its management team and employees.

"The company has a strong customer base, which we value highly, and we support the company's strategy." He says that the offer represents a premium of just over 30% on TDG's recent average share price. However, Bob Monks, general secretary of the United Road Transport Union (URTU), says: "URTU is concerned about the takeover.

"We are concerned about the intentions of Laxey Partners who are a hedge fund and we are worried that they will try to asset strip the company." Meanwhile, TDG has announced that its operating profit for the year to December 2007 was up 13% to £20.4m on turnover ahead 26% at £669.5m. Pre-tax profit rose 9% to £15.7m.

David Garman, TDG chief executive, says: "I am pleased to report  improved results for 2007, with trading a little ahead of our expectations set a year ago and clear signs that our strategy is delivering."