It's war again at Caledonia

ONE of Britain's wealthiest families is at war again over the future of its £600m stock market vehicle Caledonia Investments.

Caledonia yesterday threw out a proposal from dissident family members to break itself up and hand the cash back to investors. The renewed attempt by a militant wing of the family - whose wealth was created out of a shipping empire - surprised the board.

Chief executive Tim Ingram believed peace had broken out after making internal changes at the group and converting it into an investment trust.

But rebels including Lord Rotherwick and Sir James Cayzer, who was a friend of the Queen Mother, have renewed hostilities. They believe dismantling the group would raise 950p a share against 846p, up 28%.

Ingram rejects the idea, saying there is no 'certainty' how much could be raised. The rebels hold a stake in privately owned Cayzer Trust, which controls 37% of Caledonia. Individual family members own a further 12% of Caledonia, whose assets include merchant banks and casinos.