Northern calls for support against bid
Thursday 11 May 1995
Northern has called an extraordinary general meeting on 2 June under pressure from shareholders led by Wyser-Pratte of the US to consider the option, but says it would "seriously undervalue" shares.
David Morris, Northern's chairman, said the proposed resolution is ill- conceived and that no bid should be allowed before a review of electricity distribution prices by Offer, the regulator. This reiterates the line taken by the company after a £11-per-share offer by Trafalgar House lapsed in March.
Mr Morris said: "The resolution seeks to facilitate a low bid by Trafalgar House ... but imposes no obligation on Trafalgar House to make a bid. Your board believes this would benefit Trafalgar House to the disadvantage of Northern Electric's shareholders generally." Northern's shares rose yesterday by 19p to £8.19.
In a letter to shareholders, Mr Morris also said regulatory uncertainty means the board cannot decide the extent to which it can deliver a package of sweeteners worth more £500m, offered in defence of the original attack by Trafalgar House.
Northern's latest missive coincides with a novel twist in the takeover saga - its advisors, S.G. Warburg, are now the subject of a takeover bid by Trafalgar's advisors, Swiss Bank Corporation. There is speculation in the City as to which side will back out of the Northern/Trafalgar debacle should the Warburg takeover proceed.
Trafalgar House is still interested by buying Northern, but is unlikely to attempt a new bid in any case until Offer makes its announcement on prices. This is due at the end of June.
Without Northern's permission to bid, Trafalgar must wait for12 months after the £11 hostile bid lapses. Although Northern has said the predator may come back with another offer once regulatory uncertainty is removed, there is a view that this could be prolonged by many months after the regulator's announcement in June.
- 1 Liam Gallagher brands Kanye West 'utter s**t' during BRIT Awards performance
- 2 Isis burns thousands of books and rare manuscripts from Mosul's libraries
- 3 People who sleep more than eight hours are more likely to have a stroke, research shows
- 4 Kanye West climbs on table at Nando's to crowd chants of 'Yeezus' before Brit Awards 2015 performance of 'All Day'
- 5 Muslim women's rights campaigner writes heartfelt letter to girls thinking of joining Isis
Ukraine crisis: Putin will cut gas to Europe unless Russia is paid by the end of the week
Liam Gallagher brands Kanye West 'utter s**t' during BRIT Awards performance
Isis burns thousands of books and rare manuscripts from Mosul's libraries
Missing Mexico teachers: Protests organised by union quashed in violent police crackdown
Mohammed Emwazi: Nine things we now know about man named as Isis militant 'Jihadi John'
Oscars 2015: Birdman beats Boyhood as Eddie Redmayne and Patricia Arquette win big - as it happened
New theory could prove how life began and disprove God
Half of Ukip voters say they are prejudiced against people of other races
'Cash for access' scandal: Sir Malcolm Rifkind says 'unrealistic' for MPs to live on £67,000 salary
Aqsa Mahmood branded a 'disgrace' by her parents after claims she recruited three UK girls flying to Middle East
Russia's roadmap for annexing eastern Ukraine 'leaked from Vladimir Putin's office'
iJobs Money & Business
£17000 - £25000 per annum: Recruitment Genius: An opportunity to join this new...
£18000 - £21000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£36000 - £44000 per annum: Recruitment Genius: Encouraging more businesses to ...