ABSTRACT
Whessoe's purchase of Ashmore, Benson and Pease’s (ABP’s) Stockton works had been announced in March 1968 and the Industrial Reorganisation Corporation (IRC) met its commitment to advance £3.5 million over the period from April to June 1968. The IRC finance was provided in the form of convertible loan stock and this, together with the fact that the Corporation hoped for further rationalisation in the industry, ensured that close contact between the IRC and Whessoe would continue. Early in 1969, however, Whessoe's Chairman, Lord, was becoming uneasy about the Corporation's motives and the IRC's attitude to Whessoe was indeed undergoing a significant change. The IRC Board saw two ways out of the situation. First, Whessoe could merge with a company that was financially strong, provided that this also made industrial sense. Alternatively, the IRC could support Whessoe through its difficulties and help it to find key men to strengthen its management.
