Texas dispute solved for pounds 9.3m
Tuesday 04 February 1997
The settlement of the Texas Homecare dispute comes nine months after the matter was placed in the hands of an independent arbitrator. Ladbroke must now repay pounds 9.3m of the original pounds 290m Sainsbury agreed to pay for the DIY chain. The figure is a blow for Sainsbury, which had hoped to recoup pounds 30m-pounds 40m. The two sides had been pounds 70m apart on their valuations. "It's a paltry sum. Sainsbury must be very disappointed," one analyst said.
The Texas deal has clearly cost Sainsbury far more than it expected.
In addition to the dispute over its value, Sainsbury announced a pounds 50m provision to cover the additional costs of converting the Texas stores to the Sainsbury Homebase format last month as part of its profits warning announcement.
To cover the costs, Ladbroke will include an exceptional charge of pounds 15.4m in its accounts for the year to December 1996. This covers interest due on the settlement as well as other costs relating to the dispute.
Separately, Ladbroke is paying pounds 31.3m cash for AR Dennis, a north London- based bookmakers which has 114 outlets. The deal gives Ladbroke 1,925 betting shops and confirms its position as Britain's leading bookmaker ahead of William Hill and Coral.
AR Dennis was founded in Stoke Newington in 1935 by Alfred "Dick" Dennis. It is now run by his son Gordon who, at 61, says he would like to retire. He said the jackpot win of pounds 31.5m would not turn the family's heads or send him out buying a string of racehorses: "We are an ordinary family who lead ordinary lives."
Christopher Bell, managing director of Ladbroke Racing, said: "It is not often that a chain of betting shops of the size and quality of AR Dennis comes up for sale and we are delighted that we have been able to make this acquisition."
Investment column, page 18
- 1 President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
- 3 Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
- 4 UK weather: 'Coldest night of the year' tonight as freezing temperatures plummet to -10C
- 5 Game of Thrones is most-pirated TV show of 2014
President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
Stoke-on-Trent becomes first British city to be classified as 'disaster resilient' by the United Nations
Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
AirAsia flight QZ8501 missing: Search for plane carrying 162 passengers from Indonesia to Singapore suspended overnight
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Millions of Britons struggling to feed themselves and facing malnourishment
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Nigel Farage: Ukip leader named 'Briton of the year' by The Times
Immigrants make UK racist, says Ukip councillor Trevor Shonk
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...