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General

Geeley in u-turn for cab maker

Taxi. The meter is running and the Chinese are ready to do a complete U-turn and take control of Manganese Bronze.

Shares of the black cab manufacturer were unchanged in the rank at 31.25p. But whispers suggest 20 per cent-shareholder Geely, China’s largest privately-owned carmaker and owner of Volvo Cars, is on the verge of paying around 35p a share in cash to take control of the Coventry-based company.

Geely apparently wants to tie up a deal before Prime Minister David Cameron visits China next month to meet president Hu Jintao.

Geely in August decided not to proceed with a proposed placing and cash injection of £74million, or 70p a share, which would have given it a controlling 51per cent shareholding.

It now holds all the aces and is able to return with an offer at a much-reduced price which other major shareholders of Manganese Bronze are happy to say yes to.

Article by Geoff Foster of the Mail on line

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