Coats Viyella Bid For Tootal

EDM number 747 in 1990-91, proposed by Gerald Bermingham on 24/04/1991.

That this House is greatly concerned that a successful bid for Tootal Group plc by Coats Viyella plc would weaken Britain's position as the world's leading supplier of industrial thread and threatens the future of some of the most advanced textile factories in Europe; notes that a takeover of Tootal would cause Coats' gearing to rise to an unsustainable 92 per cent. in a highly cyclical industry; notes that Coats has been unable to sell its 80 per cent. stake in Consoltex of Canada for the stated purpose of reducing debt; fears that Coats may be overdependent on profits from the volatile South American region and their profits may be overstated; concludes that Coats may therefore be unable to finance its proposed acquisition of Tootal without leading to the closure of otherwise efficient productive capacity; is concerned that at this time of rising unemployment there is a need to take account of the effect this takeover could have on the employment of over 5,000 workers in England, Scotland and Wales; and calls on the Secretary of State for Trade and Industry to examine these and related issues with the greatest care in deciding whether or not to allow the bid to proceed.

This motion has been signed by a total of 141 MPs, 1 of these signatures have been withdrawn.