Mayflower in Daimler-Benz link

MAYFLOWER YESTERDAY raised the stakes in the bid battle for Dennis by unveiling a strategic alliance with Germany's Daimler-Benz that would include the bus and fire engine manufacturer. Mayflower, which is fighting an agreed bid for Dennis from Henlys, said the Daimler-Benz alliance would cover distribution of the Dennis range and help with chassis development and the supply of major components such as drive trains and power units.

Mayflower is offering pounds 255m in cash, compared with a cash and shares offer from Henlys which valued Dennis at pounds 264m at last night's closing price. Henlys, whose offer is being backed by Volvo of Sweden, described the Mayflower announcement as "carefully worded rhetoric" which contained no firm agreement and would be of no benefit to Dennis shareholders in the short-term.