Camford Engineering Plc

EDM number 775 in 1989-90, proposed by Trevor Skeet on 21/03/1990.

That thus House notes with grave concern the hostile bid by property developer Markheath Securities, the United Kingdom vehicle for the Australian conglomerate Adstream, to take over Camford Engineering plc, that Adstream's debt to equity gearing is dangerously high, that Adstream has no relevant experience in the automotive components sector and that Adstream has a track record of speculative trading in the shares of United Kingdom listed companies; applauds Camford's engineering and financial success over recent years, leading to its occupying a pivotal role with the British and European motor vehicle supply industry, being the sole or major supplier of key components to British motor manufacturers, including General Motors, Ford and Rover; notes that any disruption in the supply of these components would be very damaging for competition in the British motor vehicle industry and for the balance of payments; fears for that supply and the continued employment of Camford's 2,500 workforce, principally in South Wales, the West Midlands, Letchworth and Bedford; calls on the Director General of Fair Trading to refer the bid to the Monopolies and Mergers Commission for detailed consideration; and urges Camford's shareholders to reject the bid as potentially endangering the best interests of the United Kingdom, the company, its employees and its customers, bearing in mind that Camford Engineering has excellent long-term earnings prospects.

This motion has been signed by a total of 12 MPs.