Waterford statement on funds 'placing'

WATERFORD WEDGWOOD yesterday informed the stock market that it could be the middle of December before it concludes a "placing" to raise €78.7 million in much-needed cash. The company blamed the current volatility in financial markets.

Separately, it has emerged that workers at its Wedgwood cup shop in Barlaston in Stoke-on-Trent were informed on Monday that another 96 jobs were "at risk" due to the company's difficult trading position.

Workers there had already been warned recently that about 300 staff could be made redundant. Wedgwood employs about 1,500 staff at Barlaston.

Waterford Wedgwood's placing is part of a €153.7 million equity fund-raising by the troubled crystal and ceramics maker as it seeks to fund a major reorganisation of its activities.

An open offer to raise up to €101.7 million is due to close on Friday, with shareholders set to vote on this at an extraordinary general meeting on October 13th.

This open offer includes a commitment from Sir Anthony O'Reilly and his brother-in-law, Peter Goulandris, to contribute €60 million to the funding round. They own 51 per cent of the business.

Corporate Partners, a private equity fund managed by a division of investment bank Lazard, has given an undertaking to pay €15 million.

In a statement, Waterford Wedgwood said: "The company confirms that the placing process . . . is under way at this time. With the continuing unprecedented turbulence in global capital markets, the placing is not likely to complete until sometime after completion of the open offer."

The company added that the placing was "required" to be completed by no later than November 30th or, "if so agreed", by December 15th.

A spokesman for Waterford Wedgwood insisted that the placing was not being delayed and said the luxury goods group's announcement yesterday was designed to keep the market informed of its progress.

Details of the fund-raising were released by Waterford Wedgwood on September 16th. It will use the proceeds to extend its cost-reduction plan, finance additional marketing and reduce debts.