New Somerfield bidder in the wings
Ex-director Gareth Jones in talks with venture capitalists
July 3 2003
Former Somerfield director Gareth Jones is reported to be talking to venture capitalists about a bid for the UK supermarket chain.
The Times reports that Jones, the former head of Abbey National’s wholesale banking division, is now in discussions with two private equity groups to raise finance for a takeover bid.
Jones was a non-executive director of Somerfield until last August. The newspaper quotes a source who said Jones “fundamentally disagreed” with strategy for the business put in by executive chairman John von Spreckelsen.
Announcing its annual results this week, Somerfield conceded it needed to pick up the pace of change and flagged up a shift in focus for the core Somerfield chain to a stronger convenience store offer.
Somerfield rejected a 120p-a-share bid from entrepreneurs John Lovering and Bob Mackenzie last month. The consortium is barred from bidding for six months under takeover unless another formal bid emerges.
A bid from Jones would also free Sainsbury’s to make a move. The UK’s number two supermarket operator has applied for clearance to acquire 171 Somerfield stores but is also blocked from bidding due to its connection to the Loverng consortium.
