Dividend plan to halt takeover
Country Casuals: Retailer sets out strategy in battle with fomrer chairman
The company, unable to give a profits forecast ahead of its busy autumn and winter season, said that Mr Shannon's "paltry'' 140p-a-share offer does not reflect the value of the company. The offer "might have been appropriate ... when Mr Shannon abruptly left in September 1994, but it does not take into account the progress that has been made since", it said.
The company said the main core Country Casuals business has an implied value of 186p a share, without attributing any value to the two main subisidiaries - Elvi, the large woman's retailer, and Lerose, the manufacturing business.
Mark Bunce, the company's chief executive, said that Mr Shannon "is attacking us before we have even had a full management year. He is hitting us when we have gone through the group's weak first half."
The company hit out at the state it was left in when Mr Shannon walked out on it last year. It said that his deal-oriented approach after the company went public led to the business being weakened and overstretched, and led to a lack of focus.
The company said it had taken decisive action since Mr Shannon's departure to stem the losses in the troublesome subsidiaries and invest in the core business. Tom Adam, the chairman, predicted that shareholders would get a better idea of the progress being made when the Christmas trading performance is announced next January.
The company, having now put out its defence document, will be casting around for the support of its major shareholders. It has already lost the backing of Phillips and Drew Fund Management in respect of 12 per cent of its holding, and obviously Mr Shannon, who holds nearly 20 per cent.
Mr Shannon's financing for the deal is conditional on him getting 75 per cent shareholder support, according to financing documents.
Have shock jocks gone too far after Rush Limbaugh called Sandra Fluke a slut?
The ‘Beverly Hills’ of Surrey pays more income tax than big cities of the North
British business: We need to stay in the European Union - or risk losing up to £92bn a year
World news in pictures
British father faces charges after confessing to slitting his two children's throats in Lyon flat
- 1 The ‘Beverly Hills’ of Surrey pays more income tax than big cities of the North
- 2 Tottenham to smash pay scale with £150,000-a-week contract in attempt to tie Gareth Bale to club
- 3 'Revenge porn' is no longer a niche activity which victimises only celebrities - the law must intervene
- 4 The moral case on tax avoidance is overwhelming - and we all know Google wants to do the right thing
- 5 Sam Wallace: The second coming of Jose Mourinho at Chelsea will be a reunion that can only end in tears
BMF is the UK’s biggest and best loved outdoor fitness classes
Find out what The Independent's resident travel expert has to say about one of the most beautiful small cities in the world
Win anything from gadgets to five-star holidays on our competitions and offers page.
iJobs Money & Business
£500 per day: Orgtel: A top tier banking client urgently requires Finance Busi...
£425 - £550 per day: Orgtel: Senior Finance Project Manager - £550 - Bristol -...
£150 - £250 per day: Orgtel: KYC Analyst - London - Banking - £150-250/day C...
£500 per day: Orgtel: A top tier banking client urgently requires Finance Gove...