BID speculation will be revived after Invergordon Distillers reports

lower interim results in the City this morning.

The expectation is that opportunity will be taken to put a warning

shot across predatory shareholder Whyte & Mackay's bows.

Invergordon's managing director, Dr Chris Greig, should have no

trouble with pre-tax profit of around #13m against #14.6m previously,

which would be sound in the current state of the Scotch whisky industry.

The main interest lies in the continued speculation in the shares,

which stand on a 295p high largely on the near certainty that Whyte's

chief executive, Mr Michael Lunn, will renew his attempts at takeover.

After the 1991 bid, which valued Invergordon at 225p a share cash, he

was left holding an uncomfortable 41.3% minority interest. Worse still,

as Whyte & Mackay results have recently revealed, his group profits have

swung from #11.9m before tax to a bottom-line loss of #7.7m with a

thumping #21.5m interest charge to set against #4.7m income from the

investment.

Those who know Mr Lunn's tenacity feel he has delayed long enough in

the business of persuading US parent company American Brands it would

make more sense to stump up the readies for another attempt at securing

control.

Brokers thought it would happen before the end of last year,

anticipating an offer around 328p a share cash.

Since the last epic battle cost Invergordon over #4m the Leith-based

company still feels pretty sore. Chairman James Millar is a doughty

spokesman for the independence of Scottish companies and may be tempted

to say a word or two on the subject this morning.

So might Dr Greig, who rather resents Mr Lunn's close interest and

wishes to see the offending stake placed widely so that he can

concentrate on normal business. In present market conditions that would

be no problem and Whyte & Mackay's #150m turnover and near-#20m gross

profit would look impressive without Invergordon.

Although the accounts reveal that Whyte made an issue of 100 million

shares during last year to support its activities it still has a

problem. Mr Lunn will try to resolve it by seeking talks with Dr Greig,

hoping for agreed terms. Cash speaks loudest and there is a premium on

independence.