Foley dealt with rival Waterford bidders

THE FORMER Waterford Crystal boss who is involved with one of the bids for its troubled parent also dealt with a group that is leading a rival offer for the business.

Former Waterford Crystal chief executive John Foley is involved in a bid by US group Clarion Capital to buy the company’s parent, Waterford Wedgwood, out of receivership.

Clarion and the Irish group have dealt with each other before. In 2004, the investment firm advised Waterford Wedgwood on the €200 million sale of kitchenware manufacturer All-Clad.

Clarion lists US-based All-Clad as one of its past investments on its website. Waterford Wedgwood sold the business to French manufacturer Groupe SEB in 2004 to pay off some of its debts.

It is understood that Mr Foley had discussions with Clarion’s only known rival, KPS Capital, when it was considering investing in the company last year, before Waterford Wedgwood’s banks placed it in receivership four weeks ago.

Mr Foley resigned a week after KPS formally signalled its interest in buying the luxury crystal and china group.

The New York-based bidder made its approach after the receiver was appointed in January.

Sources yesterday confirmed that Mr Foley would have had discussions with KPS while Waterford was carrying out due diligence.

They pointed out that this would have been normal for someone in his position and that KPS would have had similar talks with other executives in the group.

Clarion emerged as a possible bidder for Waterford Wedgwood last week, and is understood to have written to the receiver David Carson, of accountancy firm Deloitte, last Saturday.

KPS and Clarion are bidding to buy the entire group, including the crystal manufacturing operation in Waterford, Wedgwood’s and Royal Doulton’s china businesses in Britain and Rosenthal Porcelain in Germany.

Local sources have suggested that unions and politicians favour the Clarion bid, as they believe that it has a greater commitment to maintaining manufacturing in Waterford.

It is also understood that KPS will maintain some manufacturing at Waterford for at least a year, although its plans are not clear beyond this.

Mr Carson was forced to shut manufacturing operations in Waterford last Friday with the loss of 480 jobs. He had borrowed €8 million to maintain the business, but the cash ran out last week.

Workers are continuing with a sit-in at the Waterford plant that they began last Friday.

Waterford Wedgwood’s banks appointed Mr Carson early last month after the group failed to make repayments that were due on loans. He has pledged to sell the business as a going concern if possible.

The receiver is continuing talks with a number of bidders.