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 Avengers: Age of Ultron: Nearly 700 German cinemas refuse to show movie
- 2 Donald Trump decides that Baltimore riots are Barack Obama's fault
- 3 X Factor in crisis as numbers of people auditioning plummets
- 4 General Election 2015: Stephen Hawking says he will vote Labour
- 5 Baltimore riots: Furious mother marches her son home live on TV
Bali Nine executions: Indonesia confirms killings of Andrew Chan and Myuran Sukumaran will go ahead
Keith Harris dead: Orville the Duck ventriloquist dies aged 67 following battle with cancer
The four utterly contradictory polls that tell the story of this election and why it is pointless trying to predict the outcome
Donald Trump decides that Baltimore riots are Barack Obama's fault
General Election 2015: Prospect of Labour-SNP coalition makes one in four voters less likely to support Ed Miliband, says survey
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Aaron and Melissa Klein: Oregon anti-gay bakers ordered to pay $135,000 after refusing to make cake for same-sex wedding
EU exit would hit UK economy much harder than neighbouring countries, study finds
Andrew Lloyd Webber: Phantom of the Opera writer mocked after issuing a warning about Ed Miliband and Nicola Sturgeon
General election 2015: Labour will toughen hate crimes legislation surrounding Islamophobia
iJobs Money & Business
£30000 - £38000 per annum: Recruitment Genius: They are a financial services c...
£Basic (OTE) + Uncapped Commission: Guru Careers: A Stockbroker (qualified / p...
£20000 - £60000 per annum: Recruitment Genius: Are you recently QCA Level 4 qu...
£20000 - £22500 per annum + OTE £30K: SThree: SThree Group have been well esta...