Saturday 10 April 1999
Brian Larcombe, the 3i chief executive, has adopted a very high-risk strategy for 3i by refusing to come up with the knockout bid the market wanted to see. If he pulls it off, he will look very clever. But Electra shareholders should think long and hard before accepting his mix of cash and 3i shares.
Until the Inland Revenue holed Electra's defence earlier this week by ruling that the taxman was entitled to a share of Electra's planned pounds 544m buyback, Michael Stoddard and his team seemed to have the better of the play.
Electra's shareholders would plainly have been best served if they had been offered a similar reconstruction plan at a much earlier stage. As it is, it had to be coaxed out of Mr Stoddard, under threat of a hostile bid. Even so, he has demonstrated considerable value locked up in Electra's portfolio of unquoted investments, and the scheme Electra is putting in place gives management all the incentive it needs to realise that value within a realistic timeframe.
Shareholders who reject bids and put their faith in promises from management to do better are frequently disappointed. But in this case, shareholders ought to vote yes to Electra's defence and say no to 3i.
- 1 Video shows how to turn your phone into a 3D hologram
- 2 Artist Jamie McCartney: How The Great Wall of Vagina is a stand against 'body fascism'
- 3 Katie Hopkins reveals fear she will die during brain surgery to cure epilepsy
- 4 'Gene drive': Scientists sound alarm over supercharged GM organisms which could spread in the wild and cause environmental disasters
- 5 Dutch King Willem-Alexander declares the end of the welfare state
Katie Hopkins reveals fear she will die during brain surgery to cure epilepsy
Tensions flare as Confederate flag supporter reaches for gun when confronted by protests – in pictures
'Gene drive': Scientists sound alarm over supercharged GM organisms which could spread in the wild and cause environmental disasters
Tom Cruise: Reporters banned from asking actor about Scientology
Dutch King Willem-Alexander declares the end of the welfare state
Yvette Cooper: Our choice is years of Tory rule under Jeremy Corbyn – or a return to a Labour government
Is Britain really full up? Are migrants taking our jobs? Leading academic answers the most common anti-immigration claims
Calais Migrant Crisis: Deputy Mayor of Calais labels Cameron's use of 'swarm' as 'racist' and 'ignorant'
While we fixate on Calais, the Home Office is quietly deporting dozens of migrants on 'ghost flights'
Calais crisis: The seven claims made about the migrants - and the reality
Calais crisis: For desperate migrants it is 'England or death' as they brave dogs, riot police and speeding trains
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: This is an exciting opportunity...
£13000 - £15000 per annum: Recruitment Genius: Are you passionate about custom...
£22000 - £25000 per annum: Recruitment Genius: Main purpose: Under the directi...
£35000 - £37000 per annum + benefits : Ashdown Group: Contracts Manager - City...