Andy Ruhan, son-in-law and development partner of Birmingham tycoon Roy Richardson, provided up to 拢8m to Goodall, which he used on 23 August to purchase a 3% stake in McAlpine.
Ruhan declined to comment, but a senior City source said he provided the cash in return for a major stake in Goodall鈥檚 company, Brunswick Developments. The source said that Ruhan planned to play a full role in the running of McAlpine if Goodall鈥檚 bid succeeds.
What is not clear is the role, if any, that Richardson and his twin brother Don, who together developed Dudley鈥檚 vast Merry Hill centre in the 1980s, would play if Brunswick buys McAlpine.
The source said that, although the Richardsons are fabulously wealthy, they as yet have no commercial interest in the bid other than through Tania Ruhan, Roy鈥檚 daughter and Ruhan鈥檚 wife. She is a director of Ruhan鈥檚 principal commercial vehicle, Stockdale Properties, which is involved in joint developments with the Richardsons.
This week, McAlpine investors were considering their options. Some still harbour doubts about Goodall鈥檚 financial resources, but the City source said that news of Ruhan鈥檚 backing, and the link with the Richardsons, should stop sniping about the seriousness of the bid.
McAlpine executives are also weighing up what to do. Chief executive Oliver Whitehead would only say last week that the firm will respond in due course, rather than rejecting the bid outright.
Industry analysts have been pressing the McAlpine board to reject Goodall鈥檚 260p-a-share offer. However, it appears that their opinion is not shared by several major shareholders, who have urged Whitehead to meet Goodall for talks. In the forefront of these is Phillips & Drew Fund Management, which holds about 12% of McAlpine鈥檚 shares.
Phillips & Drew gave conspicuous support to an earlier Goodall offer. However, City sources said shareholders speaking for a further 8% of the company are also keen for negotiations to begin.
The firm鈥檚 shares were worth 267p as 好色先生TV went to press, compared with a 52-week low price of 110p. The difference of opinion between analysts and investors is mainly over the question of whether Goodall鈥檚 offer is a fair reflection of the value of the company.
Analysts point out that McAlpine is becoming increasingly profitable: its pre-tax profit for the six months to 30 June 1999 was up 52% 拢17.3m 鈥� its highest-ever return. sThe firm鈥檚 private housing arm 鈥� Goodall鈥檚 principal target 鈥� increased its operating profit 拢4m to 拢15.7m. Civil engineering was also a star performer, lifting its operating profit to 拢3.2m from 拢1.8m in the first six months of 1998. This division鈥檚 4.6% margins compare favourably with the best in the sector.
The Special Projects arm lifted operating profit to 拢1.8m from 拢200 000 on turnover up from 拢25.6m to 拢71.7m.
But despite McAlpine鈥檚 impressive performance, other potential bidders were cool about mounting a counter-offer to Goodall鈥檚 Beazer chief executive John Low said: 鈥淲e always have an open mind as far as opportunities in the market are concerned.鈥�
Taylor Woodrow chief executive Keith Egerton said the firm had no plans to bid, although he said that it had considered the possibility of an offer for McAlpine when Goodall made his first bid.
US housebuilder Centex, which bought Amec housing arm Fairclough earlier this year and which has been linked with McAlpine, is thought to have its hands full absorbing Fairclough.
