Suitor demands details of De La Rue's problems

A FRENCH takeover suitor stepped up pressure on British banknote printer De La Rue yesterday by calling for a clearer picture of the production problems that shook the company last year.

Paris-based Oberthur, which revealed last month it had tabled an offer proposal for De La Rue worth 900 million, said the firm needed to provide full details of the issues that arose with a "principal customer", understood to be the Reserve Bank of India.

Oberthur, which has 570 staff in the UK, said its indicative offer, which was refused by De La Rue on grounds that it undervalued the company, still stands and a deal would help restore the firm's "damaged" reputation.

De La Rue's share price has plummeted by more than a third in recent months following the production problems that caused its chief executive James Hussey to resign. The impact on full-year accounts is still unknown.

Jean-Pierre Savare, president of Oberthur, said: "We believe there are crucial questions that need answering from De La Rue in relation to India and the status of De La Rue's relationships with its existing customers, in the light of the continuing uncertainty surrounding the company and its future prospects.

"We are extremely serious in making our approach and we believe a combination of De La Rue and Oberthur would provide the catalyst for restoring De La Rue's standing and reputation."