Off to Swindon on a sunny and warm day, having dealt with errors in the Kode Takeover agreements and Directors’ service contracts, but finding an emerging deal-breaker on Tax Clearances as we draft public statements and railway drivers being sent home for refusing to drive coal trains in the miners’ dispute
Up and to the office at Grove House to unlock the building and wait for the staff to arrive. The builders are continuing to finish the painting of brickwork and sealing of cracks and crevices. Also the roof plates had arrived for bolting to the gable joints. Then on to Little End Road to talk to John Lamb and run through the Director’s agreements and service contracts and, just as well, as there were still a number of errors. In fact the largest was the choice of a 5 for 3 bonus issue (which was too much for capitalisation cover) and the 11 for 10 Kode to Comart exchange as a result (which changed all the benefits and calculations to the executives disfavour.) This plus a number of discrepancies on starting date for service and share numbers led to me taking the lot back for amendment prior to distribution. Further calls to Richard James established that I would be very foolish not to get the tax clearances; and so I left by car for Swindon determined more than ever on management changes.
I arrived and went straight into further negotiations this time with Peter Smith and Stephen Day. The tax clearances was the biggest sticking point and, subject to early enquires tomorrow, the deal looks like being delayed for a period on my account. We also went through the agreements in detail and the Directors service contracts and drafted the necessary amendments accordingly. Lastly my drafts on publicity were typed up (rather poorly) and the results amended and left with Peter for his further consideration. They could only agree on the unsatisfactory nature of the Peter King detail and thus we are all agreed (Peter Smith, Stephen Day, John Lamb, Derek Weatherby) that it has to be renegotiated. I will pave the way in the morning and Stephen will come up to try to complete the task. Home very late and to bed tired at 12.00pm. A sunny and warm day today, getting cloudier later on. News that the miners dispute continues with talks making no progress and railway drivers being sent home for refusing to drive coal trains. British Aerospace has called off its merger talks with Thorn–EMI leaving GEC the field.