Piedmont may return with increased M&B bid
Lewis was accused of trying to buy M&B on the cheap after tabling a 230p a share bid for the 77% of the company he does not own.
The 230p offer values the company at around £940m or just under £3bn including the net debt of £1.9bn but was turned down by the Board.
The company called on investors to reject the offer on the basis that 230p “significantly undervalues the company”.
In a new statement today, Piedmont said that despite speculation, the 230p offer did not represent its final bid.
“Piedmont reserves the right to increase its offer price above 230p per M&B share were an offer to be made and as disclosed in the announcement on 12 September 2011, Piedmont also reserves the right to reduce the level of consideration to be paid.”
Observers claimed the approach required an investigation by the Takeover Panel as to whether there was a “concert party” at M&B between Joe Lewis and John Magnier and JP McManus, whose Elpida investment company holds a 20% stake in the business.
One source told Publican’s Morning Advertiser: “The offer comes as M&B is weakened with an interim chief executive and chairman and a below-strength board. The current share price reflects the current instability within the boardroom — it looks like Joe Lewis is trying to buy the company on the cheap.”
Some believe the situation at M&B now mirrors the position at Rank where the Malaysian tycoon Quek Leng Chan was able to use his 29% stake in the business to take control of the company.
The current boardroom situation at M&B is the latest episode in a five-year saga of instability.
Robert Tchenguiz built up a 22% stake in the business and was instrumental in persuading the company to pursue a split of its property and operational interests, which led to hedging losses of almost £500m. Lewis bought Tchenguiz’s stake in October 2008 for 130p a share after his bank Kaupthing forced a sale amid the depths of the Icelandic banking crisis.
