Waterford reviews Rosenthal unit

Waterford Wedgwood is reviewing its controlling stake in German china and glassware Rosenthal AG, the company said in a statement.

Shares in Waterford Wedgwood were up over 28 per cent on the Iseq at 12.23pm on the news, the sharpest daily rise in over three years.

Media reports yesterday suggested that the review is likely to result in a sale. JPMorgan Cazenove has been hired to give advice. The company has a market value of €48.2 million.

The Sunday Business Postreported yesterday that Waterford Wedgwood had received "several unsolicited approaches" to buy Rosenthal.

"This would provide a welcome cash injection to the group," analyst Mark Healy at Davy Stockbrokers in Dublin said in a note on the possibility of a sale.

Waterford has a 90 per stake in Rosenthal and an option to buy a further 5.67 per cent. In Germany a 95 per cent shareholder can acquire the remaining 5 per cent.

Last year Rosenthal had sales of €170 million and in a research note this morning analysts suggested the price range could be between €150 million to €200 million.

In February Waterford Wedgwood announced it would lay off 311 workers as part of a €12.5 million-euro reorganization in Germany where Rosenthal is based.

Waterford Wedgwood is facing a difficult period with reported debts of over €400 million and competition from lower cost economies.

Sir Anthony O'Reilly, and his brother-in-law, Peter John Goulandris have contributed €300 million to the company in recent years.

Waterford Wedgwood recently had a request for guarantees on loans of up to €39 million declined by the Government.

The company is also struggling with the slowdown in one of its main markets; the US and the weakness of the dollar. Waterford Wedgwood has four main brands - Waterford Crystal, Wedgwood, Rosenthal and Royal Doulton.

In an interim management statement released to the stock market in February Waterford Wedgwood said its sales for the year to the end of March would be 4 per cent lower at €700 million.