UK Estates criticised as offer deadline looms
Wednesday 08 January 1997
Ashquay also sought to increase the pressure on UK Estates by sticking to the 13 January deadline as the final closing date for its offer. The Takeover Code allows for Ashquay to extend its offer until 27 January.
The outcome could be close even though Ashquay has already won over investors representing almost 38 per cent of UK Estates' ordinary shares and 16 per cent of its preference shares.
"We believe UK Estates shareholders have a simple choice," said Derek Tughan, Ashquay's chairman.
"Prior to the announcement of the offers, UK Estates' ordinary shares had a value of just 22.5p; under the ordinary offer they are presently valued at 29.6p."
Shares in UK Estates closed unchanged at 27p, while those in Ashquay stayed at 38.5p.
Ashquay also repeated its charge that the target firm's management had rewarded itself despite "failing to enhance the value of the company's shares".
In particular, Ashquay has highlighted UK Estates' administrative costs, which last year totalled pounds 970,000, and the pounds 530,000 spent on shares for an employee benefit trust. Last year pre-tax profits at UK Estates fell from pounds 610,000 to pounds 382,000.
Ashquay promised that the combined group would be prudently financed, with pro forma gearing lower than that for UK Estates.
Ashquay has offered 10 shares for every 13 ordinary UK Estates shares.
UK Estates has rejected the offer, noting Ashquay is a smaller company with net assets less than half those of UK Estates.
It has also queried Ashquay's reasons for shortening the bid deadline, suggesting Ashquay might be unable to meet the costs of underwriting a rights issue to fund the takeover.
Fracking is turning the US into a bigger oil producer than Saudi Arabia
Missing Malaysia Airlines plane: Details emerge of two young Iranians using stolen passports in search for a better life
Three-quarters of Britons are saying it wrong - the top ten most common mispronunciations
Oscar Pistorius trial: Athlete's friend asked him if 'he was f***ing mad' after shooting through sunroof
How climate change helped Genghis Khan: Scientists believe a sudden period of warmer weather allowed the Mongols to invade with such success
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
Exclusive: Impact of immigrants on British workers ‘negligible’
Katie Hopkins continues campaign to become Britain's most hated talking head with poorly timed Bob Crow tweet
Ukraine crisis: Russia pledges to 'retaliate against sanctions' as Ukrainian president says Crimea vote will not be recognised
The quiet diplomat: Catherine Ashton - recognised and admired in all the world’s troubled countries, yet ridiculed at home
Grace Dent: Who cares if she spells it Barraco Barner? Gemma Worrall is more employable than some bookish arts graduate
- 1 Watch: The student election Macklemore parody that isn't completely awful - and all the others that are
- 2 Grace Dent: Who cares if she spells it Barraco Barner? Gemma Worrall is more employable than some bookish arts graduate
- 3 First Kiss: Filmmaker gets 20 strangers to make out on YouTube with awkward results
- 4 Joanna Lumley’s garden bridge over the Thames gets £30m seal of approval from Government
- 5 Ian Wright breaks down in ITV documentary charting his rise to England and Arsenal striker
iJobs Money & Business
£1000 per month: Inspiring Interns: The company works with Tier 1 FTSE 100 Ban...
£35000 - £60000 per annum + Bonus + Benefits: Pro-Recruitment Group: You must ...
£60000 - £80000 per annum + BONUS + BENEFITS: Harrington Starr: A top, City ba...
VOLUNTARY ONLY - EXPENSES REIMBURSED : Reach Volunteering: Fantastic opportuni...