Londis to decide on Musgrave bid today

Londis shopkeepers were today due to give their verdict on a £60m (€90m) takeover bid for the convenience store business from Irish retail giant Musgrave.

The shopkeepers, who hold shares in the wholesaler and distributor, were preparing to vote on the offer from Budgens owner Musgrave.

The 100% bid would give £31,000 (€46,700) to each of almost 2,000 shopkeepers who own stakes in Londis.

Londis said the offer from Musgrave had not been the highest on the table, but would be the best deal for shopkeepers in terms of future trading arrangements.

However, it could still falter in the face of a last-minute challenge from a consortium headed by two retailers.

Lancelot, set up by former directors of corner shop chain T&S Stores, said it had raised its offer for Londis to £63m (€95m).

Under the terms of its bid, Lancelot would buy a 40% minority interest in Londis for £25.2m (€38m).

The store owners would retain a 60% majority controlling interest through new Londis shares.

The bid process attracted interest from across the retail sector with approaches thought to have come from the Co-op, Iceland owner Big Food Group and UK off-licence chain Thresher.