BusinessCompany NewsBid for Close Brothers getting hostile

Bid for Close Brothers getting hostile

UK Stockbroker Cenkos is prepared to make a hostile bid for Close Brothers which has spurned the 950p-a-share offer as ‘inadequate’

Andy Stewart, Cenkos chief executive, is
planning to meet with small Close
Bros
shareholders in an effort to promote his 950p-a-share offer, valuing
Close Bros at £1.41bn.

Stewart said he would take his offer direct to the main shareholders if the
Takeover Panel approved the takeover, FT.com reports. Close Bros’
biggest shareholders are Caledonia Investments, Lloyds TSB, Prudential, Standard
Life and Legal & General.

Before making his indicative offer last Wednesday, Stewart had discussed
raising equity finance for the deal with shareholders and potential investors in
Cenkos. He said he would continue to meet possible investors this week.

Close Bros rejected his 950p-a-share bid, within 24 hours of Stewart’s offer,
as ‘wholly inadequate, refusing to even pursue discussions with Stewart.

According to analysts, the offer does not fully reflect the company’s value
and assumes growth in line with market forecasts and the return of some of the
company’s cash, but lacks a bid premium.

Further reading:
Robertson appointed as Oxford Catalysts CFO

LSE finance guru moves to Close Brothers

Read
the story in FT.com

Related Articles

M&S business rate liabilities based on £570m rateable value

Company News M&S business rate liabilities based on £570m rateable value

4m Emma Smith, Managing Editor
BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

8m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

12m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

1y Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

1y Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

1y Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

1y Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

1y Emma Smith, Managing Editor