LONDON (Thomson Financial) - Dobbies Garden Centres PLC., the garden centre
retailer 65 percent owned by Tesco Plc., said Sir Tom Hunter's West Coast
Capital Ltd has initiated proceedings seeking an interim order to block Dobbies'
proposed open offer to shareholders.
In a statement today, Dobbies said it has considered the merits of the open
offer and believes that it is in the best interests of the company and all of
its shareholders.
"The open offer will enable the Company to progress its stated expansion
plans and the Board believes that it provides access to funding on attractive
terms in current market conditions which will be earnings enhancing," said
Dobbies.
"The Company intends to present a robust defence of its strategy at the
court hearing."
Last year, supermarket giant Tesco tried to take full control of Dobbies
with a 1,500 pence a share, or 156 million pound, offer that was backed by
Dobbies' board.
However, its plans were thwarted by West Coast Capital, the investment
vehicle of the Scottish entrepreneur and philanthropist, which owns rival garden
centre chains Wyevale and Blooms of Bressingham.
Hunter holds 29.2 percent in Dobbies, which he has used as a 'blocking
stake' to prevent Tesco from de-listing the company. Tesco would need 75 pct to
pursue such a course.
If Hunter wants to maintain his current percentage holding he will need to
take up his full entitlements under the open offer at a cost of 43.8 million
pounds.
If he does not he will risk Tesco's stake passing the 75 percent threshold.
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