New Somerfield bid rejected
120p-a-share offer ‘presents risks to business’
June 5 2003
The board of Somerfeld has rejected an increased 120p-a-share offer from the consortium led by John Lovering.
The higher bid was tabled earlier this week, subject to conditions including due diligence, board approval, and OFT clearance for Sainsbury’s to acquire “a large number” of Somerfield stores.
Somerfield said the amended proposal still undervalues the supermarket operation, and “presents considerable risks to the business.” In April, Somerfield rejected a 103p-a-share offer from the consortium.
Executive chairman John von Spreckelsen said: “This latest approach substantially undervalues our business. We have strong brands in Somerfield and Kwik Save, a solid strategy for delivering shareholder value and excellent prospects. The strategy is underpinned by a very strong balance sheet and a valuable property portfolio.”
