Offer Update

Guinness Peat Group PLC
16 October 2000


                 Guinness Peat Group plc

 Recommended Cash Offer Facility for Staveley Industries
                           plc

Guinness  Peat Group plc ('GPG') announces  that,  as  at
2.00 p.m. on 13 October 2000, GPG Acquisitions No. 3  plc
('GPG Acquisitions'), its wholly-owned subsidiary, had by
virtue of acceptances of the Offer acquired or contracted
to   acquire   75,263,838  Staveley  Shares  representing
approximately  91.1 per cent. in value  of  the  Staveley
Shares  to which the Offer relates.  GPG Acquisitions  is
therefore  entitled  to exercise  its  right  to  acquire
compulsorily   all  of  the  Staveley  Shares   held   by
Shareholders  who  have  not  accepted  the  Offer.   GPG
Acquisitions intends to issue notices under  section  429
of  the  Companies Act 1985 on 18 October  2000  to  such
Staveley Shareholders.

Taken  together with GPG's existing holding  of  Staveley
Shares,  the  GPG  Group now owns or  has  contracted  to
acquire    109,588,538   Staveley   Shares   representing
approximately 94.2 per cent. of the entire  issued  share
capital  of Staveley (of which 550,000 shares  relate  to
market purchases made by GPG on 2 and 10 October 2000
which have not as yet been settled).

Staveley Shareholders should be aware that they may still
accept the Offer, which remains open for acceptance until
further  notice,  rather  than wait  for  their  Staveley
Shares to be compulsorily acquired by GPG Acquisitions.

Staveley Shareholders who have not yet accepted the Offer
and  who wish to do so now should complete and return the
Form of Acceptance by post or by hand as soon as possible
to  Computershare  Services PLC  at  P.O.  Box  859,  The
Pavilions,  Bridgwater Road, Bristol BS99 1XZ or  (during
normal  business  hours) by hand  only  to  Computershare
Services  PLC at 7th Floor, Jupiter House, Triton  Court,
14 Finsbury Square, London EC2A 1BR.

Staveley  Shareholders should also be aware  that  it  is
likely  that  the  listing  of Staveley  Shares  will  be
cancelled in due course pursuant to the listing rules  of
the UK Listing Authority.


Enquiries:

GPG
Blake Nixon         020 7236 0336

Deloitte & Touche Corporate Finance
Robin Binks         020 7303 6720

Square Mile Communications Limited
Kevin Smith         020 7601 1000


Unless  the  context otherwise requires, the  definitions
set  out  in  the  offer document dated  23  August  2000
relating to the Offer apply in this announcement.

Deloitte  &  Touche of Stonecutter Court,  1  Stonecutter
Street, London EC4A 4TR is authorised by the Institute of
Chartered  Accountants in England and Wales to  carry  on
investment   business.   Deloitte  &   Touche   Corporate
Finance,  a  division  of Deloitte &  Touche,  is  acting
exclusively for GPG and GPG Acquisitions and no one  else
in  connection with the Offer and will not be responsible
to  anyone  other  than  GPG  and  GPG  Acquisitions  for
providing the protections afforded to clients of Deloitte
&  Touche  Corporate Finance nor for providing advice  in
relation to the Offer.

Deloitte  &  Touche Corporate Finance has  approved  this
announcement  as an investment advertisement  solely  for
the  purpose of section 57 of the Financial Services  Act
1986.