Pyrrho seeks answers over bid for Business Exchange
Nikhil Kumar is The Independent's New York correspondent. He was formerly assistant editor on the foreign desk and has also done a variety of jobs on the city desk, where he wrote about markets, commodities and other business and economics topics.
Wednesday 24 August 2011
There was a new twist in the long-running takeover saga around the office space provider MWB Business Exchange yesterday after a top shareholder called on the bidder to explain why it had failed to come forward with a formal offer.
Pyrrho Investments, the second-largest shareholder in MWB Business Exchange, had signed an undertaking to back an offer by the company's biggest investor, MWB Group, which owns around 72 per cent of the business. But the agreement expired on 12 August, prompting the demand for an explanation.
The MWB offer values Business Exchange at around 80.1p per share, or £52m, above the £49.4m value implied by yesterday's closing share price of 76p.
Pyrrho said MWB Group needed to explain formally "to all shareholders of MWB and Business Exchange the specific reason for the delay in pursuing the possible offer, as well as the expected timetable to complete the possible offer".
In the absence of a public explanation, however, Pyrrho said Business Exchange's independent directors should go to the Takeover Panel and ask for a deadline compelling MWB to either make a formal bid, or walk away for at least six months.
Pyrrho added that if MWB "is unable or unwilling" to go ahead with the bid, then Business Exchange should seek out other suitors. "Business Exchange's shareholders have been more than patient in allowing MWB to formulate a possible offer," Pyrrho's investment director Paul Cummins said.
MWB declined to comment on Pyrrho's statement but, despite the delay, the company is understood to be pressing ahead with its offer for Business Exchange. Earlier, MWB snubbed interest in the company from the FTSE 100-listed office provider Regus.
- 1 Apple has installed security backdoors on 600m iPhones and iPads, claims security researcher
- 2 UK pirates will get four warning letters a year
- 3 Fight Club 2: Chuck Palahniuk sequel is a 'meta-fictional comment on the cultural response to the original'
- 4 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 5 Israel-Gaza conflict: Deadly flechette shells 'used by Israeli military in Gaza Strip’
Malaysia Airlines flight MH17 crash: 'Nine Britons, 23 Americans and 80 children' feared dead after Boeing passenger jet is 'shot down' near Ukraine-Russia border
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: victims’ bodies bundled in black bags and loaded onto trains
iJobs Money & Business
£850 - £950 per day: Orgtel: Programme Director - Conduct Risk - Banking - £85...
£45000 - £50000 Per Annum + excellent benefits: Clearwater People Solutions Lt...
£250 - £300 per day + competitive: Orgtel: Finance Manager - Accountant - Bank...
£100000 - £120000 per annum + BONUS + BENEFITS: Harrington Starr: A leading fi...