Electra thwarts pounds 1.3bn 3i bid

THE pounds 1.3BN 3i bid for rival venture capital group, Electra, looked set to collapse last night after Electra investors voted to back the board's proposal to thwart the bid. The board needed to win support from at least 75 per cent of shareholders who voted on the proposal at yesterday's extraordinary meeting and after several recounts. Electra won support from more than 76 per cent.

3i has stated that it will withdraw its cash-and-shares offer for the trust if the Electra deal is approved. 3i had earlier in the day complained to the Takeover Panel after Swiss Re, the insurance group, announced while the meeting was still going on it had bought 1.5 per cent of the trust and was seeking to develop a commercial relationships with Electra.