UK Takeover Panel asks Hunter to make firm offer for Dobbies or abandon bid

08 August 2007

Mumbai: UK regulators have asked West Coast Capital Ltd, the private equity investment arm of Scottish retailer Tom Hunter, to either make a firm offer for Dobbies Garden Centres plc by August 9 or abandon the deal altogether.

In a "put-up-or-shut-up" order, the Takeover Panel, UK''s mergers and acquisitions watchdog, directed Hunter to proceed with its challenge to top Tesco plc''s £227.7 million ($464.8 million) bid or let the retail giant''s offer run its course.

Tesco''s offer values the Midlothian, Scotland-based Dobbies at £155.6 billion. The offer also assumes debt of a little over £71 million.

Tesco claims that its offer has been accepted by 28.1 per cent of Dobbies'' shareholders after exercising options to buy shares from management and had also secured clearance from the Office of Fair Trading.

In June, West Coast made a serious challenge to Tesco by saying it was considering a rival bid.

West Coast thwarted Tesco''s bid for Dobbies by increasing its shareholding in it to nearly 26 per cent to prevent Tesco from acquiring a minimum of 75-per cent shares. West Coast''s continued interest has kept the share price well above Tesco''s offer price, threatening Tesco''s agreed deal.