Hillsdown rejects pounds 1.5bn offer from Unigate
Monday 18 May 1998
Unigate, the milk and fresh food business with a cash pile of pounds 280m, made the offer at the beginning of the year in an attempt to pre-empt the individual sale of Hillsdown's businesses, which are being demerged into three different quoted companies.
Unigate is interested in the chilled foods business, which is a big supplier of ready-made meals to Marks & Spencer. It would have sold off unwanted parts such as Hillsdown's furniture and housebuilding operations, which have been the subject of interest from trade and financial buyers.
However, analysts say rival offers for the food operations could come in from companies such as Northern Foods, Geest and Danone, the French foods company.
Depending of the movement in Hillsdown's share price this morning, the company may be forced to make a statement about the offer to the Stock Exchange.
It is possible that Unigate could come back with a higher offer for the whole of Hillsdown. This would have to be a significant increase on the previous bid as Hillsdown is currently valued at pounds 1.35bn as of Friday's closing price of 185.5p. However, it is more likely to make an offer for the chilled foods business, which is considered the jewel in Hillsdown's crown.
Unigate has sufficient cash resources to finance an offer. Meanwhile, it is possible Unigate would spin-off its dairy operations into a separate company, or merge them with Express Dairies, the recently demerged milk operation of Northern Foods.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...