Outlook: What have you got to lose? Give Rose a go
Thursday 09 April 1998
But though GUS now looks a few rounds ahead in the fight, let's not write Argos off just yet. Stuart Rose, the new chief executive, has constructed a creditable defence with pledges to improve margins, return pounds 431m to shareholders and link up with Littlewoods in a home shopping venture.
His main advantage, however, is that institutions are awash with cash just now after a wave of share buy-backs and special dividends, and there's precious little reasonably valued equity around to mop it up. The Wolfson loot looks appetising, but it also throws up a daunting reinvestment problem. By contrast, the Argos defence offers 150p a share now and an ongoing stake in a potential recovery stock. Mr Rose is still a bit of an unknown quantity, but many institutions will be sorely tempted to take the risk.
If Argos shares stay above 500p after the bid fails, then, with the 150p in hand, shareholders are immediately in the money. It's a long shot, but Mr Rose may have to work for his half a mil signing-on fee after all.
- 1 The difference between a migrant and refugee, in one sentence
- 2 Miley Cyrus calls out hypocrisy of women’s nipples being taboo
- 3 Celebrity Big Brother 2015: Tila Tequila kicked off show after 'describing Hitler as a good man'
- 4 iPhone 5c to be discontinued, no iPhone 6c to replace it
The difference between a migrant and refugee, in one sentence
Spain accused of 'provocation' after letting Russian submarine refuel off Gibraltar
Allonautilus scrobiculatus: World's 'rarest' creature spotted for only the third time ever
Miley Cyrus calls out hypocrisy of women’s nipples being taboo
Celebrity Big Brother 2015: Tila Tequila kicked off show after 'describing Hitler as a good man'
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
Labour leadership: Jeremy Corbyn accused of 'deluding' young supporters with 'claptrap'
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Iain Duncan Smith 'should resign over disability benefit death figures', says Jeremy Corbyn
Iain Duncan Smith calls for urgent ESA overhaul as part of drive to cut down welfare costs
iJobs Money & Business
£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...
£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...
£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...
£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...