WATERFORD Wedgwood plans to return ailing German porcelain firm Rosenthal to profit in the next three years but can only do so if it has an adequate stake, Waterford's finance director, Mr Richard Barnes, has said.
In an interview with Frankfurter Allgemeine Zeitung, Mr Barnes said Waterford could eventually increase its stake in Rosenthal to between 47 per cent and 49 per cent but added that the size of the stake depended on Rosenthal's performance. Waterford Wedgwood said in December it planned to purchase an initial 9.1 per cent shareholding through the issue by Rosenthal of 60,000 shares at a cost of around £3 million. Rosenthal shareholders vote on the move at an extraordinary general meeting today. The e.g.m. will also consider a proposal to remove the existing 5 per cent voting cap on shareholders.
Waterford Wedgwood also has an option to buy a further 15 per cent of Rosenthal over the next four years.
Mr Barnes said Rosenthal's weakness was high production costs which explained why its exports were weak.
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