Wickes poised for pounds 50m cash call
Monday 09 December 1996
"We have not given an exact date for the rights issue but it is likely to be this week," a spokesman said yesterday. The group is expected to seek pounds 50m in a move designed to plug a hole in its finances following the discovery of accounting irregularities.
Potential bidders include building materials giant RMC and Woolworths to Comet group Kingfisher. Analysts believe Wickes would command at least pounds 200m.
The Serious Fraud Office launched an investigation late last month into the former senior executives of the group. Henry Sweetbaum, the company's chairman and chief executive, resigned in June after disclosing that past profits were overstated.
In October it was announced that he had agreed to repay pounds 720,000 of profit- related bonuses.
Former finance director Trefor Llewellyn, who left to join another company, agreed to pay back pounds 485,000.
A report commissioned by the new management from Price Waterhouse and the law firm Linklaters & Paines found that profits had been overstated by a total of pounds 51m over a number of years.
New chairman Michael von Brentano said in a shareholders' circular that Mr Sweetbaum must accept "ultimate responsibility" for the overstated profits, adding that there was no evidence that Mr Sweetbaum or other directors had been aware that supplier rebates had been prematurely booked as profits.
- 1 Malaysian cyclist could face disciplinary action after 'Save Gaza' gloves protest
- 2 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 3 Fifty Shades of Grey trailer provokes moral outrage from US parenting groups
- 4 McDonald’s removes chicken nuggets from the menu in Hong Kong amid major food scare
- 5 Students offered grants if they tweet pro-Israeli propaganda
Israel-Gaza conflict: Israeli targeting policy under scrutiny after shellfire hits a mother and child, a school full of refugees and a doctor’s home
Students offered grants if they tweet pro-Israeli propaganda
McDonald’s removes chicken nuggets from the menu in Hong Kong amid major food scare
Satellite full of sexually experimental geckos adrift in space, Russia loses control of mission
Costa Concordia finally towed from Giglio amid environmental concerns that cruise liner is a 'floating bomb'
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
iJobs Money & Business
£600 - £650 per day: Orgtel: Conduct Risk Liaison Manager - Banking - London -...
£18000 - £23000 per annum + Comission: SThree: SThree, International Recruitme...
£280 - £300 per day + competitive: Orgtel: Test Analyst, Edinburgh, Credit Ris...
£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...