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 Moscow voted the world's unfriendliest city
- 2 The excuses your boss is most likely to believe when you call in sick
- 3 I'm pansexual – here are the five biggest misconceptions about my sexuality
- 4 More than 11,000 Icelanders offer to house Syrian refugees to help European crisis
- 5 If these extraordinarily powerful images of a dead Syrian child washed up on a beach don’t change Europe’s attitude to refugees, what will?
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
Senior British politicians tell David Cameron: When dead children are being washed up on beaches, it's time to act
Jeremy Corbyn calls Osama bin Laden's killing a 'tragedy' - but was it taken out of context?
If these extraordinarily powerful images of a dead Syrian child washed up on a beach don’t change Europe’s attitude to refugees, what will?
If you're not already angry about the refugee crisis, here's a history lesson to remind you why you really should be
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
iJobs Money & Business
£14000 - £16000 per annum: Recruitment Genius: This company was established in...
£20000 - £25000 per annum + OTE 40k: SThree: SThree are a global FTSE 250 busi...
£20000 - £25000 per annum + competitive: SThree: SThree are a global FTSE 250 ...
Voluntary and unpaid, reasonable expenses reimbursable: Reach Volunteering: St...