Founding family shareholders in pub company Yates have attacked a £93 million takeover bid by a private equity group.
The investors, who hold about 20 per cent of the shares in Yates, believe GI Partners' offer undervalues the firm, which has spent £18 million refitting 98 pubs.
The shareholders, who have formed a consortium and appointed investment bank Investec to advise them on GI's bid, challenged the private equity firm to extend and increase its offer.
The opposition comes as a blow to GI, whose bid vehicle Thorium has set a deadline of today for investors to accept its offer.
So far, 23 per cent have accepted the bid, which needs 90 per cent to force other shareholders to sell up.
Thorium said Yates' independent directors considered the offer fair and reasonable and had unanimously recommended it to shareholders.
The offer has struggled to win over investors amid speculation a second bidder might emerge for the 129 bars branded Yates and 23 larger Ha!Ha! outlets.
Thursday July 22, 2004
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