Former Granada boss Sir Gerry Robinson apologised to staff at Rentokil Initial after being forced to give up his attempt to take control of the East Grinstead-based rat catcher.

The star of the TV series I'll Show Them Who's Boss said: "I am sorry that we have not found the right way forward. This was a genuine attempt to make a change with the existing shareholders staying involved. This has been an unsettling time for employees of Rentokil Initial and I apologise for that."

Sir Gerry had already ruled out making a full-scale takeover bid worth around £3 billion, instead pinning his hopes on shareholders overthrowing the company's current management and appointing him executive chairman.

But talks with investors over his proposals, which would have seen him take a 2.5 per cent stake in the company worth £70 million depending on performance, broke down on Friday Rentokil emerged as a target for Sir Gerry after he set up Raphoe Management in July as a vehicle for investing in under-performing UK companies.

A 19.8 per cent fall in profits at Rentokil in the first half of this year fuelled speculation that investors were becoming frustrated at the time it was taking executives to turn the company around.

Last month, Sir Gerry called on the board of Rentokil to let him mastermind the turnaround of the company, whose services range from security to rat-catching.

He warned the board that Raphoe would consider a takeover offer, or more likely call a meeting of shareholders, if it rejected the proposals.

But he ruled out a bid for the company last week following discussions with shareholders which he hoped would result in his proposals being accepted.

Rentokil welcomed the decision by Sir Gerry to abandon his pursuit of the company.

Doug Flynn, who was appointed chief executive earlier this year, said: "I am pleased that we can now continue undistracted with the challenge of returning Rentokil to where it should be.

"We have a lot of work to do, but our recovery plan is absolutely on track and we are clear on what we need to do to restore Rentokil Initial to profitable growth."

The recovery plan involves Rentokil focusing on pest control and washroom and textiles, which Mr Flynn believes offer the best platform for growth.

Rentokil also hopes to get more than £300 million from the sale of its conference arm, Initial Style Conferences.

Tuesday, October 25, 2005