Tesco extends £155.6m offer for Dobbies to 19 August

09 August 2007

Mumbai: Supermarket chain Tesco, which managed to muster an mere five per cent addition to its 28 per cent stake in Dobbies Garden Centres, has extended its £155.6m offer to shareholders to August 19.

Tesco''s agreed offer of £15 a share, which values Dobbies, at £228m, including debt, requires backing from more than 50 per cent of Dobbies'' shareholders.

Tesco''s offer follows the UK Takeover Panel''s directive to rival bidder Sir Tom Hunter to "put up or shut up," requiring Hunter to bid by 5pm today or be barred from bidding for six months.

Hunter, through his investment arm West Coast Capital, has built a 26 per cent stake in Dobbies, for which the Scottish millionaire paid up to £18.45 per share, triggering speculation about a possible counter bid.

Tesco, which owns 28.1 per cent of the shares already, added another five per cent, taking overall approval for the bid to 32.6 per cent - well short of the total it needs.

Hunter already owns Wyevale Garden Centres, the country''s largest garden centre operator, and Blooms of Bressingham. He also has a 29.9 per cent stake in Flying Brands, a home shopping firm that owns Flying Flowers.