Henlys share slump leaves Mayflower in pole position
Tuesday 06 October 1998
Henlys said it would not revise its cash and share offer - valuing Dennis at pounds 250m - despite last week's decision by Mayflower to raise its cash offer by 5 per cent to pounds 268.9m. Henlys said tough markets and an expected downturn in the Far East meant that a higher offer "would not be in the best interests of shareholders".
The move led the Dennis board to withdraw their backing for Henlys' bid. However the Dennis directors, who backed Henlys because of its better corporate fit, did not endorse Mayflower's bid and advised shareholders to take no action. The board will issue a recommendation before the Henlys offer expires on 16 October.
City analysts said a victory for Mayflower, which owns 29.9 per cent of Dennis - is almost inevitable unless Henlys can push up the value of its stock and hence the value of its offer.
Henlys was backed by Volvo of Sweden, which bought 10 per cent of the company at the start of the bidding war. But a sharp fall in Henlys' share price has led to a collapse in the value of the bid, tabled in August, from pounds 309m to just over pounds 250m.
Robert Wood, the Henlys chief executive, said he hoped that a rebound in financial markets would raise the offer value. "I am not conceding defeat. Some 70 per cent of Dennis shareholders have still to decide and this battle is still going to run over the next few weeks."
Henlys shares shed 12.5p to 412.5p. Mayflower fell 4p to 133.5p and Dennis was unchanged at 470p.
Actress sees off speculation about her appearance in an amazing way
The Washington Post editor helped Bob Woodward and Carl Bernstein bring down President Nixon
Children's bookseller wins The Independent's new author search
Board creates magnetic field to achieve lift
- 1 Salisbury ranked seventh-best city in the world to visit in Lonely Planet’s Best in Travel 2015
- 2 Disney announces new female-led film Moana
- 3 Banksy has not been arrested: Internet duped by fake report claiming artist's identity revealed
- 4 Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
- 5 Russell Brand threatened with arrest after filming outside Fox News headquarters
Chicago voter tells Obama 'don't touch my girlfriend' – Obama stays super smooth
Oscar Pistorius: The brutal prison life that awaits disgraced athlete
Banksy has not been arrested: Internet duped by fake report claiming artist's identity revealed
Ebola outbreak: Nowhere is safe until virus is contained in Africa, claims the top doctor who beat it in Nigera
Raphael Ravenscroft dead: 'Baker Street' musician who played the most famous saxophone solo for just £27, dies aged 60
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
Jose Manuel Barroso warns David Cameron against making 'historic mistake' over immigration reforms
Worst Airports of 2014: Poll names Islamabad airport in Pakistan worst in the world
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£20000 - £25000 per annum + OTE £Competitive: SThree: SThree Group and have be...
£23000 per annum + pension and 22 days holiday: Ashdown Group: An established ...