Capital is in the midst of an inquiry being conducted by the Monopolies and Mergers Commission following the pounds 192m hostile bid from the rival London Clubs International group earlier this year. The 47 for 100 all- paper offer would today be worth 175p a share, with London Clubs up 2.5p at 373p yesterday, had it not lapsed following the announcement of the MMC investigation. Capital's shares were up 1p to 183.5p yesterday.
Capital revealed two months ago that its chairman, Garry Nesbitt, was stepping down to be replaced by Ernest Sharp, a former director of Grand Metropolitan. Mr Nesbitt was the target of criticism over the company's poor management controls, most notably over wine purchasing. Some of the sharpest attacks were said to have come from Kenneth Thompson, a former director of Royal Bank of Scotland and Glaxo, who was Capital's acting chief executive for a spell last year. He also stepped down as a non-executive director in May.
A spokesman yesterday defended the share sale by Mr Dunkley, who is said to be considering a property purchase, pointing out that the bid and the impending interim results announcement had reduced the opportunities for transactions.Reuse content