Tesco extends deadline for Dobbies to accept bid

Published on Thursday 9 August 2007 12:11

SIR Tom Hunter this evening said he would not be joining the bidding for garden centre chain Dobbies.

In a statement, Sir Tom's West Coast Capital Lios said it had been considering all options relating to its shareholding in the Lasswade-based company, one of which had been a takeover, but that "it does not currently intend to make an offer for Dobbies".

The announcement came after Tesco earlier today extended the deadline for Dobbies’ shareholders to accept its bid for the garden centre chain.

It comes after only 4.5 per cent of Dobbies’ shareholders approved the bid by yesterday’s deadline.

Tesco itself owns 28.1 per cent of the shares already, giving the bid an overall approval of 32.6 per cent – well short of the total it needs.

Dobbies’ shareholders were initially given until 1pm yesterday to accept the 155.6 million Tesco bid. But the deadline has now been extended to August 19 in order for Tesco to get the backing it needs from at least 50 per cent of Dobbies’ shareholders.

It is the second time Tesco has extended the deadline after it added on a further three weeks last month.

Many shareholders are understood to believe the Tesco bid of 15 a share is too low as Dobbies shares currently hover around 16.50.