Takeover Panel sets WH Smith bid deadline
Permira must table offer by August 9
The Takeover Panel has given private equity firm Permira until August 9 to table a formal bid for WH Smith or walk away.
The official City watchdog said it has set the deadline with the agreement of both parties, following representations made by advisers to book and entertainment retailer WH Smith.
Permira’s bidding vehicle, Jamaica, has until noon on August 9 to make any offer. WH Smith pulled out of talks with Permira last month after the firm said it was highly unlikely to make an offer at the 371p-a-share rate at which WH Smith had agreed to open its books,
The sticking point was the insistence of the trustees of the WH Smith pension plan that Permira should make a cash commitment up front to cover a shortfall in the fund.
Permira said earlier this week it was considering a revised bid through Jamaica, but did not specify a possible offer price.
Under panel rules, Jamaica would be banned from a new approach for six months if it fails to make a formal offer by the deadline.
