Hunter backs down on Allders takeover fight

Published on Thursday 6 February 2003 00:00

SCOTTISH retail entrepreneur Tom Hunter yesterday backed away from his second takeover battle in a fortnight as he agreed to an increased offer for Allders department store.

His move came after Scarlett Retail, the firm set up by property company Minerva to bid for Allders, sweetened its takeover bid from 160p per share to 164.1p per share.

The increased bid values the department store group, where Hunter has a near-11 per cent stake, at 161.7 million.

Hunter had previously said he wanted "a seat at the table" in deciding Allders’ future. But he said yesterday: "In the past few days we have held extensive discussions with Scarlett Retail and Minerva but have been unable to find a way in which [bid vehicle] West Coast Capital could participate jointly in an offer for Allders."

About a fortnight ago, Hunter threw in the towel for the House of Fraser department store chain, where he had tabled an indicative bid of 85p per share, after HoF management would not agree to talks. He retains a 6.95 per cent stake in the group.

Andrew Rosenfeld, Minerva’s chief executive, said: "It has been a hard couple of months and I’m pleased we’ve been able to resolve the situation."

Allders’ board, which had recommended the previous offer, also recommended the increased one.

Many believed Hunter had wanted to merge Allders with HoF. But Rosenfeld said: "Ultimately, because of takeover rules, it was impossible to invite Tom into the deal."

Scarlett is owned by Minerva, investment bank Lehman Brothers, former Debenhams and Bhs chief executive Philip Green and Asda finance director Phil Cox.

The revised price allows Hunter, the founder and former owner of the Ayrshire-based Sports Division chain, to bank a small profit on his shares’ sale.