Heinz Chairman Leads Bid for Waterford Stock

DUBLIN, Ireland — A group of overseas investors led by Tony O’Reilly, Irish-born chairman of U.S. food giant H. J. Heinz, is negotiating to buy up to 29.9% of china and crystal group Waterford Wedgwood, industry sources said today.

Waterford shares, hit recently by production, marketing and accounting problems, jumped to 61 Irish pence (91.5 cents) on the Dublin stock exchange today, up sharply from the Friday close of 55 pence (82.5 pence).

The sources said O’Reilly’s Fitzwilton PLC, an industrial holding company with interests in financial services, would offer to buy 29.9% of Waterford Wedgwood at under 40 Irish pence (60 cents) a share, valuing the deal at around 70 million Irish punts ($105 million).

Waterford Wedgwood’s board of directors issued a statement to the stock exchange confirming that “discussions are taking place which may lead to a cash subscription (sale of new stock) for a major, but not controlling, interest in the share capital of Waterford Wedgwood PLC. No further announcement will be made until discussions are concluded.”

A stake of 29.9% is the largest that can be acquired without making a full bid for the company.

The industry sources said O’Reilly’s backers for the proposed deal would be wealthy overseas investors, mainly from the United States and Canada.

Waterford Wedgwood has been hit recently by a downturn in its crucial British and U.S. markets.

Stock analysts expect Waterford Wedgwood to incur losses of 6 million punts ($9 million) in 1990, after estimated 1989 post-tax losses of around 20 million punts ($30 million).