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4. Tlg succumbs to 353 million pounds wassall bid By Paul Durman

TGL, the lighting group, looked set to fall to the 353 million pounds takeover bid from Wassall yesterday after Cooper Industries of the US allowed its lower offer to lapse.

TGL, part of Thorn EMI until a management buyout five years ago, promptly recommended shareholders should accept Wassall's offer of 175p a share and said it would be sending out a circular shortly to shareholders recommending acceptance of the Wassall bid.

Cooper opened the bidding for TGL early this month with a 160p a share offer that valued the company at 321 million pounds.

Despite the benefits Cooper might have derived by combining TGL with its other electrical and lighting businesses, the US company decided it could not justify paying more than Wassall.

John Riley, Cooper's president and chief executive officer, said: "While we believe TGL fits strategically with Cooper, we have decided that a higher bid would not provide the return we expect for our shareholders."

Wassall, a conglomerate that is turning itself into more of a financial investor, already owned 25.5 per cent of TLG, which it started acquiring at prices around 100p early last year. It is believed to have added another 1 per cent or so yesterday as TLG' share price fell back from 183p to 171½p.

Because Wassal bought a large number of shares at prices below 140p, its actual acquisition cost will be about 336.3 million pounds. Wassall also owns an American DIY seal-ants business and a bottle tops maker.

Last year Cooper bought Menvier-Swain, the UK emergency lighting company. It said it remained "committed to acquisitions as a vehicle for growth but only if they meet our criteria for increasing shareholder value."

Cooper is a diversified electrical groups based in Houston, Texas. If it had pressed ahead with the TLG bid it could have become the world's largest global lighting company.

5. Progress hope at pilkington By Paul Durman

PILKINTON, the glassmaker whose share price has collapsed in three months, is hopeful that it can increase underlying profits this year despite trading problems in many of its markets.

The group has shed 1,200 jobs since the start of April, which means that it has cut its payroll by 4,750 in the past 18 months. The substantial cost savings from this lead Paulo Scaroni, chief executive, to believe Pilkington "will report progress in this current year ".

However, he said: "Many of the markets in which we operate are experiencing increasing economic uncertainty, volatility and deteriorating trading conditions, which make forecasting difficult."

In the year to last March Pilkington made 125 million pounds, although this was before 225 million pounds of redundancy costs, disposal losses and asset write-downs. Pilkington shares were steady at 60½p, having traded above 140p at the start of June.

The group's US automotive business experienced a sharp fall in profits in the first five months of the current year. The General Motors strike cost it 7 million pounds, one of its plants was shut down for much of the period, and the fall in glass exports to Japan cost another 4 million pounds.

Pilkington is also suffering because of the slowdown in the economies of South America, which represent 10 per cent of both its building product sales and of its automotive sales to manufacturers.

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