Somerfield talks with Booker fail talks fail
Saturday 29 August 1998
Booker quickly said it was in talks with another public company - believed to be Budgens, led by John von Spreckelsen - about an all share deal.
Somerfield said it informed Booker of its decision at 5am yesterday morning when David Simons, Somerfield's chief executive, telephoned Booker's chairman, Jonathan Taylor.
Relations between the two companies appeared to go rapidly downhill yesterday over the reasons for the deal's collapse.
Somerfield said that after conducting its due diligence on Booker it had decided it could not go ahead. This sparked immediate concerns over Booker's trading position leading to an angry reaction from the cash & carry company. Mr Taylor said: "We, as well as Somerfield, felt it was best not to proceed at this time. Both sides were seeing problems, some of which were to do with timing."
This implied that Booker had reservations about the ability of Somerfield's management to digest a second deal just six months after its pounds 1.2bn merger with Kwik Save. Other stumbling blocks were said to include Booker's concerns over the recent weakness of Somerfield's share price; a negative reaction from smaller independent retailers; and fears over a possible monopolies reference.
Mr Simons said: "We were very satisfied that we could have derived the synergies and that the strategic rationale was there, but he added that he "could not envisage" circumstances under which the deal would be revived.
The decision was welcomed in the City which marked Somerfield's shares 14.5p higher to 379.5p.
Booker shares fell 36.5p to 209p.
- 1 Sainsbury's '50p challenge' poster telling staff to encourage customers to spend more placed in shop window instead of staff room
- 2 Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
- 3 HeForShe campaign: Iceland to follow up Emma Watson speech with UN women's rights conference – for men only
- 4 Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
- 5 Teenagers irritable because early school hours mess with their biological clocks
Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
Car tax disc changes: Five facts you never knew about your (almost obsolete) tax disc
Isis an hour away from Baghdad - with no sign of Iraq army being able to make a successful counter-attack
Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
The Aral Sea: Nasa pictures show how what was once the fourth largest lake in the world has become almost completely dry
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
Mark Reckless becomes second Tory MP to defect to Ukip in a month
Should gay sex be illegal? 16% of Britons think so
- < 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...