Why Britain’s tool hire king is in a £348m bidding war

a TOOL hire firm has been thrust to the centre of a bidding war between French and Belgian rivals, and hedge funds desperate to cash in.

Lavendon, whose cherry pickers were used in the making of the harry Potter films and help with window cleaning at the Louvre in Paris, is being fought over by French group Loxam and Belgian materials handling firm TVh.

Last week TVh launched a £348m hostile takeover bid, but Loxam weighed in yesterday with an undisclosed cash offer.

Leicester- based Lavendon advised its shareholders to take no action yet on the new bid, highlighting a statement last month from chief executive Don Kenny that the company was in ‘robust health’.

TVh offered 205p-per- share, saying it wanted to use the company to target Middle Eastern markets. But Lavendon said shareholders did not support the bid and it was worried about potential risk and disruption to its business.

Loxam also urged Lavendon shareholders not to take any action on TVh’s offer, adding: ‘Discussions with Lavendon are ongoing and there can be no certainty that any offer will be made, nor as to the terms of any such offer.’ Meanwhile, hedge funds have been snapping up increased stakes in the firm in a bid to cash in on the price war.

In a trading update earlier this month, Lavendon said revenue had been growing strongly thanks to its investment plans. The fall in the pound would help the group finish the year ahead of expectations, it added.

Last year Loxam bought both the French and spanish businesses of hertz Equipment Rental Corporation.

Lavendon’s clients include the Louvre Palace, where its aerial platforms mean maintenance workers can reach all floors of the building without touching the delicate exterior.

as well as the harry Potter films, its equipment has also been used to film the abu Dhabi Grand Prix, as well as royal weddings and the Queen’s jubilee celebrations.

Lavendon shares rose 6.9pc, or 14p, to 218.25p.