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Robert Wiseman Dairies

Companies: RWD   
26/06/2001

The Office of Fair Trading (OFT) is poised to take action against Scottish milk producer Robert Wiseman Dairies regarding an alleged abuse of its dominant 'middle market' position. The proposed 'interim measures direction' follows a complaint from one of Robert Wiseman's English rivals, Express Dairies, and would involve the OFT limiting the extent to which Wiseman's maximum price north of the border 'could exceed its minimum price in the highlands'. OFT spokesman Mark Kram commented that 'we felt we had reasonable ground to suspect that the law has been breached'. Wiseman's finance director Billy Keane professed to being 'obviously disappointed' with the news, not least because the Competition Commission had investigated the issue last year. Although quick to point out that no action was taken against Wiseman back then only because the commission was 'totally deadlocked' Keane admits that he and his fellow directors had 'thought that the whole thing was over'. Wiseman now has the chance to put its case across before any action is taken and Keane is adamant that 'it is now very important to us that we get the right result'. Citing Wiseman's strong position in England he added, 'we always felt they [Express] came to Scotland to get even'.

Market cap: £97.9m
PE Forecast: 8.1
Share price: 122.5p

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