WORKERS at a wallpaper factory have been told a potential merger with a rival company would be good news - although the effect on jobs is unclear.

Entrepreneur Trevor Hemmings owns a 71 per cent stake in Nelson-based John Wilman Ltd which operates Coloroll in Nelson and John Wilman Textiles in Burnley, and has bid £28.4million for Cheshire-based Vymura.

If the deal does go through it is expected the Vymura business and Coloroll operation in Nelson would be merged to save costs.

Coloroll managing director Barry Forester, who spoke to the workforce about the possible merger yesterday, said it was too early to say what impact it would have on employment.

"A merger would be a good thing because it would create a business that is a clear market leader in the UK.

"But it is not possible at this stage to say what the situation with jobs would be." The bid comes just weeks after John Wilman, the colourful East Lancashire businessman who brought the Coloroll name back from the ashes after it collapsed in the 1980s, relinquished his full-time role as design director of the firm and moved to Spain.

He still retains a 20 per cent shareholding in the business and remains its part-time deputy chairman.

Design directors have now been appointed at both Coloroll and the John Wilman textile division based at Heasandford, Burnley, where around 150 people are employed.

The British Linen Bank has made the offer for Vymura on behalf of Gleadway, which is a new firm owned by Mr Hemmings' Jersey-registered company Newby Manor.

Gleadway said it had already received acceptances for its bid from investors representing 50.1 per cent of the company's shares.

But Vymura's board has hit out at the bid urging shareholders not to take any action.

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