Sugar to make bid for Viglen
Saturday 10 October 1998
The move takes Mr Sugar's shareholding in Viglen to 41.7 per cent from 33.7 per cent, forcing him to mount a full takeover bid for the company at 24p a share - the price at which he bought the latest tranche of shares. A formal offer could be tabled as early as next week.
The news sent Viglen shares soaring to 22.75p, up 8.75p. Earlier this week they had fallen to an all-time low of 14p. Viglen's board recommended shareholders not to take any action.
However, it is not clear whether Mr Sugar, who is on holiday aboard his yacht in the Mediterranean, wants to take full control of Viglen. A spokesman said: "He thinks the shares are cheap and a good investment. City rules dictate he's got to make a bid, and if people want to sell he's got to buy them out."
Viglen was demerged from Mr Sugar's Amstrad group last summer after he broke up the business and returned the parts to shareholders. Mr Sugar had originally wanted to sell part of his stake in Viglen to institutional shareholders, but decided not to when he concluded that the price was too low.
Shares in Viglen have fallen sharply since the demerger, when they were valued at almost 90p, as the company has struggled with falling personal computer prices.
Viglen assembles PCs from imported parts before shipping them directly to consumers in the UK. As Dell, the huge US direct-sales group, has stormed the market Viglen has struggled to maintain its margins.
- 1 Migrant crisis: Greek soldier saved 20 people singlehandedly off Rhodes beach
- 2 Frank Lampard's face drops when Holly Willoughby introduces him as a 'Man City legend'
- 3 UK weather: Britain braced for snow as arctic air mass moves in
- 5 General Election 2015: Stephen Hawking says he will vote Labour
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Aaron and Melissa Klein: Oregon anti-gay bakers ordered to pay $135,000 after refusing to make cake for same-sex wedding
Andrew Lloyd Webber: Phantom of the Opera writer mocked after issuing a warning about Ed Miliband and Nicola Sturgeon
General election 2015: Labour will toughen hate crimes legislation surrounding Islamophobia
HSBC review into moving headquarters from UK 'underway'
iJobs Money & Business
£20000 - £60000 per annum: Recruitment Genius: Are you recently QCA Level 4 qu...
£20000 - £22500 per annum + OTE £30K: SThree: SThree Group have been well esta...
£25 - 30k: Guru Careers: We are seeking an Application Support Analyst / 1st L...
£45K - £55K (DOE) + Benefits: Guru Careers: We are seeking a full stack .NET D...