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.
Presents unwrapped, turkey gobbled... it's time to relax
Video: It is the type of thing no parent wants to hear
- 1 Exodus Gods and Kings casting controversy: Ridley Scott would never cast 'Mohammad so-and-so from such-and-such' in lead role
- 2 This letter from a reader explains why women can’t play football
- 3 'You should come to my house and eat cheeses with me': 4-year-old sends adorable love letter to girl at school
- 4 Scientists predict green energy revolution after incredible new graphene discoveries
- 5 Michael Buerk wishes he killed Jimmy Savile when he had the chance - by pushing him overboard a cruise ship
Black Friday 2014: Opening times for Asda, John Lewis, GAME, PC World and Argos
Sean Abbott: Messages of support flood in for bowler after death of Phil Hughes
Plebgate: Andrew Mitchell’s reputation in tatters as judge rules he used the word ‘pleb’
Dr Lam Hoe Yeoh: Voyeur doctor jailed for eight years after using network of hidden cameras to film patients, colleagues and friends on the toilet
'You should come to my house and eat cheeses with me': 4-year-old sends adorable love letter to girl at school
Ukip says babies born to immigrants in the UK should be classed as migrants – which would include Nigel Farage’s own children
Obama: The only people with the right to object to immigration are Native Americans
The young are the new poor: Sharp increase in number of under-25s living in poverty, while over-65s are better off than ever
Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by Ohio police
Ukip mocked after mistaking Westminster Cathedral – for a mosque
Sarah Vine criticises lesbian mother Jack Monroe: 'If she was unsure about her sexuality, she should have taken greater precautions'
iJobs Money & Business
£50000 - £100000 per annum + benefits: h2 Recruit Ltd: Are you a high achievin...
£35000 - £100000 per annum + benefits: h2 Recruit Ltd: An award winning, marke...
£19000 - £24000 per annum: Recruitment Genius: Due to our clients continuing s...
£20000 - £22000 per annum: Argyll Scott International: Service Desk Analyst Re...