AUGUST 9, 1999
Reynard calls off its flotation
REYNARD MOTORSPORT INC., a 15% shareholder in British American Racing , has called off its planned flotation on the New╩York╩Stock╩Exchange. The share offering was announced in October last year with Reynard's aim being to raise $57.5m for the acquisition of Gemini Transmissions and the racing car manufacturer Riley & Scott. This was later reduced to $40.4m. The flotation was due to have taken place in May but was delayed at the time because of the boom in Internet stocks, which was attracting most of the available investment money on Wall Street. Since then Reynard has completed the purchases of Gemini and Riley & Scott, using shares rather than cash.
Last week the company's chief financial officer Robert Swistock filed a withdrawal statement with the US Securities and Exchange Commission. No reasons were given for the decision.
This could have interesting repercussions for the company's Vice-President Rick Gorne, who is currently spending half his time running BAR. He has a 3% shareholding in Reynard and was hoping to sell this when the company was floated. There have been a lot of rumors suggesting that Gorne was then planning to quit Reynard to become the new boss of BAR.
It has been a busy week for Reynard with the opening of its Auto Research Center in Indianapolis (which features a 50% rolling road windtunnel and a seven-post test rig), the completion of the Riley & Scott purchase and the announcement of a new sportscar program called the Reynard 2KQ which will beginning testing in October. Work is also pushing ahead to revamp the Riley & Scott Indycar chassis which will go on sale to IRL teams next year.
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