Acquisition announcement mooted

Waterford Wedgwood is understood to be in talks about a possible acquisition and is prepared to spend up to £300 million (€380 million).

But chairman Dr Tony O'Reilly told shareholders that the company did not want to name any party to which it was talking. Regarding suggestions that it might acquire the British ceramics firm, Denby, he could not comment, but said Denby was "a hell of a firm" which Waterford Wedgwood admired greatly.

After the meeting, Dr O'Reilly said an announcement could be made within three months.

A large portion of the a.g.m. was taken up with questions about the company's share buy-back policy. Several shareholders said the company was not correct to buy back its own shares and hold them as treasury shares.

But Dr O'Reilly said if the company sold the shares back into the market at a profit this would be a significant bonus for the company.

Finance director Mr Richard Barnes said holding the shares as treasury shares was "marginally earnings enhancing" as no dividends had to be paid out on treasury shares, unlike normal shares.

Dr O'Reilly agreed that the share performance of Waterford Wedgwood had been "disappointing" in the last year. A perception that eastern economies were in recession had affected the company.