Despite the bid gossip that had been swirling around Milton Keynes-based Telephone Rentals for a couple of years, the timing of the Cables offer was a complete surprise, so much so that the target’s share price had shed a couple of pence on Tuesday, and was quietly occupied elsewhere cementing its relationship with Frome, Somerset-based and privately-held cellular telephone marketing outfit the Carphone Group Ltd – cele brated for putting up the sponsor ship that took Ian Botham to crick et’s County Champions Worcestersh ire. Telephone Rentals already held 15% of Carphone, acquired for UKP825,000 in May 1987 (CI No 690), which at the time was forecasting fiscal 1988 sales of UKP30m, and wan ted cash to fund further expansion – so Telephone Rentals agreed to pay UKP13m for the remaining 85%, most of which was held by chairman Graham Thomas and his family. The price values Carphone at UKP15.3m, implying a near threefold appreci ation in the original investment.
