Dawson likely to split

Dawson International could be split up, with various parts of the cashmere group to be sold to the highest bidder. The Scottish textile group said last week that it had entered takeover talks "with a number of parties which may or may not lead to an acquisition of a substantial shareholding of existing shares in the company or an offer for the entire issued share capital". The company emphasized that talks were at "a very preliminary stage and there can be no certainty that any offers will be made or as to the terms in which any offer might be made." Analysts believe that a sale of parts of the business is imminent and that the individual brands are worth more than the sum of their parts. Although the identity of the interested parties is unknown, some have speculated that a consortium of Italian investors, including former deputy chairman Giovanni Ghione, may be potential buyers.

In August, the group reported a drop in earnings due to poor market pricing and investments in its Todd & Duncan brand. Pre-tax losses added up to £3.2 million, down from a profit of £500,000 the year before.