LIBERTY Electric Cars, which has been forced by regulators to make a public climb down over its proposed £15m takeover of fellow North-East electric vehicle maker Tanfield Group, is appealing to the Wearside firm’s shareholders to combine the two businesses.

After receiving a rap on the knuckles from the panel which regulates the code on takeovers and mergers, the Oxfordshirebased business that develops electric vehicles in Cramlington, Northumberland, issued a statement clarifying that it has not made, and does not intend to make, an offer to acquire all of the shares in Tanfield.

Under takeover rules, Liberty will not be able to make another bid for Tanfield for another six months, barring exceptional circumstances.

Liberty claimed its statement issued yesterday via the Stock Exchange news service was in response to recent media speculation.

However, in a press statement issued last Friday, Ian Hobday, Liberty’s managing director said: “Liberty Electric Cars has sought to acquire, through a special purpose holding company to be formed, a majority interest in AIM-listed Tanfield Group.”

Last night, Mr Hobday was unavailable for comment.

Ahead of Tanfield’s annual meeting on Thursday, Liberty is appealing directly to shareholders of the Washington-based manufacturer to rubber stamp a proposal that would combine the two businesses.

It would require the approval of the majority of Tanfield and Liberty shareholders and a waiver of the takeover code for Liberty to succeed in its bid.

The board of Tanfield has informed Liberty that it does not support the proposal.

Mr Hobday had earlier said that representatives from Liberty would be attending this week’s meeting.

The Cramlington firm claimed last month it had secured a £500m agreement with Chinese Government- backed business CETC to help produce a fleet of 10,000 electric buses.

With more deals in the pipeline Liberty is keen to expand the scale of its operation and secure additional expertise to fulfil Mr Hobday’s claims to make the North-East the centre of global electric vehicle research, innovation, and production.