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