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 Should Apple buy Greece?
- 2 Michael Douglas regrets 'embarrassing' Catherine Zeta-Jones with oral sex comments
- 3 Drummer Lee Rigby's family reject 'extremist' groups using Woolwich murder for political gain
- 4 Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
- 5 Fox News anchor asks 'what's to prevent' three people from marrying after same-sex marriage legalised
The moment a Queen's Guard soldier lost it and drew his gun at annoying tourist
Greece crisis: The wider lesson is that it’s time to abandon this failed experiment in currencies
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Extend Right To Buy to tenants of private landlords, Labour's Jeremy Corbyn says
David Cameron struck double blow in his hopes to win Britain a new EU deal
Pentagon accuses Russia of 'playing with fire' over nuclear threats towards Nato
iJobs Money & Business
£22500 - £27000 per annum + OTE £45K: SThree: Since our inception in 1986, STh...
Negotiable: Recruitment Genius: This extremely successful and well-established...
Competitive with monthly bonus: Guru Careers: We are seeking an experienced FX...
Competitive (Freelance) : Guru Careers: An Investment Writer / Stock Picker is...