Arnotts reject €210m bid

A €210 MILLION bid for Arnotts has been rejected by the board after suitor Carrgran increased its offer marginally in its bid to take over the Dublin department store company.

News of the second failed bid was released by Arnotts yesterday when the board issued a brief statement:

“The board of Arnotts plc (the ‘Board’) announces it has received a further approach from Carrgran at a price of €11.80 per share. Having considered the approach, the Board has categorically rejected it as failing to adequately reflect the value of the business of Arnotts and its prospects. The Board notes the revised proposal represents a minimal increase of 2.6% to the earlier proposal of June 2002 which was also rejected as inadequate.”

A spokesperson for Carrgran said they have just received the communication from Arnotts’ board and would respond in time.

The shares were trading yesterday at their year high of €11.50, well up from the year low on January 2 when they were trading at €6.90.

Initial broker reaction to the original bid from Carrgran, a bid vehicle for corporate financier Peter O’Grady-Walshe, former Arnotts trading manager Mark Delaney and Lehman Brothers, indicated an offer close to 13 a share would be needed to take the company private.

Despite Arnott’s rejection no one expects O’Grady-Walshe and his backers to walk away yet. There has been no significant transfer of shares since March 25 when Aberdeen Asset Managers revealed it had a 3.8% interest in the company.

The staff pension fund is the single largest shareholder with 12.7%. The pension fund, is said to be close to €68 million in surplus.