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 Unseen Charlie and the Chocolate Factory chapter deemed 'too subversive' released
- 2 Ebola virus: It's ripped through towns – now the deadliest ever outbreak of the virus is heading for Africa's teeming cities
- 3 Joan Rivers: 'Palestinians deserve to be dead'
- 4 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
- 5 Mexican woman becomes world’s 'oldest person' at 127
Israel-Gaza crisis: YouTube footage shows scale of destruction after 50 days of shelling
iPhone 6 'hidden code' could indicate sharper screens or bigger phones
Keira Knightley topless: Conservative actress does own take on #Freethenipple campaign for Interview Magazine
Joan Rivers: 'Palestinians deserve to be dead'
Ebola virus: It's ripped through towns – now the deadliest ever outbreak of the virus is heading for Africa's teeming cities
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
Rotherham child sex abuse scandal: Labour Home Office to be probed over what Tony Blair's government knew - and when
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Do you realise just how foolish the UK looks?
With Douglas Carswell joining Ukip, my party has taken another giant step forward
iJobs Money & Business
£40000 - £45000 per annum: Ashdown Group: An established professional services...
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
£28 - 32k + Uncapped Commission: Guru Careers: A Business Development Manager ...
£40000 - £70000 per annum + Bonus+Benefits+Package: Harrington Starr: C# .NET ...