Plantsbrook shares surge as SCI lifts holding to 8.5%
Having announced a small increase in its stake last week from 2.95 to 3.2 per cent, SCI said it had acquired a further single holding that had taken it to 8.5 per cent.
A spokesman for SCI said the American company hoped to buy more shares, and described the stake as a 'strategic investment'. He refused to say how large a shareholding SCI would try to pick up.
During its successful bid for Great Southern, SCI made clear that it would be prepared to sit on a substantial minority stake if it failed to persuade the controlling Field family to sell.
It finally dislodged the Fields after increasing its offer from an original 600p a share, worth pounds 87m, to 775p, or pounds 113m.
The stake in Plantsbrook is seen as a pre-emptive move to prevent rival North American groups from entering the UK market. Loewen, the Canadian burial company, took a look at Great Southern during SCI's offer but in the end did not table a counter-bid.
SCI, the largest burial company in the US, with 873 funeral homes, has grown aggressively, acquiring more than 700 companies over 30 years.
Between 1989 and 1993 its net profits doubled to dollars 103m.
Compensation terms were also announced yesterday for Great Southern shareholders who sold to SCI at 680p, thinking they were accepting an offer that could not be raised.
They will be paid the 95p difference between the 'final' offer and the higher bid with which it was replaced after the intervention of Loewen.
The takeover panel agreed that shareholders had been accidentally misled by SCI, whose advisers, Schroders and Linklaters & Paines, left out of official documentation a crucial clause giving SCI the right to raise its bid in the event of a competitive situation arising.
Yesterday Plantsbrook shares were up 12p at 175p.
- 1 Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
- 2 Expert urges cat lovers to own just one animal each
- 3 Sainsbury's '50p challenge' poster telling staff to encourage customers to spend more placed in shop window instead of staff room
- 4 Yes, the iPhone 6 is a miracle, but it's Apple's tax affairs that deserve a double take
- 5 Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
Isis, we are told, is a 'clear and dangerous threat to our way of life'. I’m sorry, but I just don’t buy it
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Should gay sex be illegal? 16% of Britons think so
Mark Reckless becomes second Tory MP to defect to Ukip in a month
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...