Investors canvassed on lower offer
Thursday 09 March 1995
With the £1.2bn bid in the balance after Professor Stephen Littlechild's unexpected U-turn on price controls for the regional electricity companies, leading investors are being told that this might be the only way of persuading Trafalgar House to keep the offer alive.
The Takeover Panel has told Trafalgar House that there is no question of it being allowed to reduce its offer across the board, despite the collapse in regional electricity share prices that followed the regulator's announcement.
However, under the rules, Trafalgar House would be allowed to buy up to 30 per cent of the stock through the stock market. Advisers believe most institutions would be prepared to part with some of their holdings at £9 a share provided they could sell the rest at £11.
The effect would be to reduce Trafalgar House's average price per share to around the £10.40 mark.
Northern Electric is being widely blamed among other regional electricity companies for prompting regulatory action with a defence against Trafalgar's bid which others regarded as way over the top.
Northern was offering £500m to shareholders in sweeteners in an attempt to persuade them to reject the bid. Prof Littlechild cites this as one of the reasons why he decided the price controls announced just eight months ago were not sufficiently demanding.
The value of directors' share options, worth millions of pounds in some cases, have been badly hit by the regulator's volte face.
- 1 Howard Jacobson: Let's see the 'criticism' of Israel for what it really is
- 3 Do you know this man? Amnesia sufferer found in park pleads for help in identifying who he is
- 4 PornHub begs users to stop uploading video clips of Brazil getting beaten 7-1
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Jennifer Lawrence face palms Emma Watson at Christian Dior show in Paris
Mick Jagger denies being World Cup curse and reason for Brazil’s embarrassing defeat
Gingers face extinction due to climate change, scientists warn
Do you know this man? Amnesia sufferer found in park pleads for help in identifying who he is
Sustained immigration has not harmed Britons' employment, say government advisers
British jihadist calls for 'flag of Islam' over Downing Street and Buckingham Palace
Australia facing international condemnation after turning around Sri Lankans at sea
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
There’s a nasty smell in the political air – and it’s coming from the Tories
iJobs Money & Business
£40000 - £45000 per annum: Harrington Starr: A Global Financial Service Organ...
£50000 - £60000 per annum: Harrington Starr: Linux Systems Administrator - UNI...
£40000 - £45000 per annum: Harrington Starr: UNIX Systems Administrator - Orac...
£40000 - £55000 per annum: Harrington Starr: Linux Systems Administrator - (Su...