London & Regional pull out of Somefield bid
London & Regional officially withdrew yesterday. The group intended to sell on 550 stores to United Co-operatives.
United Co-operatives last month pulled out of a deal to take on 500 Somerfield stores and as part of the deal United would have taken on all of Somerfield’s pension deficit but United’s board became anxious about Somerfield’s pension blackhole.
One bidder remains, the consortium of Apax, Barclays Capital and property entrepreneur Tchenguiz. This consortium initially offered 205p a share but could feasibly offer less since they are now the only bid vehicle in town.
Under City regulations, any offer from the Tchenguiz consortium can’t be lower than 190p because Tchenguiz has already bought shares at that price.
Apax pulled out of a bid to buy Woolworths earlier this year and so may be pressured into completing the deal if they are to be taken seriously by any retailers in the future.
