Tesco rival pulls out of Dobbies race
Scots businessman Sir Tom Hunter has decided not to bid against Tesco for the chance to buy the Dobbies chain of garden centres.
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| Dobbies in Milton Keynes |
Hunter had been told by the Takeover Panel he had until 5.00pm today to put in a bid or step away for the time being.
Hunter said the decision not to put in a counter bid was due to agreements entered into between Dobbies and Tesco after the Dobbies board recommended Tesco's 1,500p-a-share offer on 8 June.
These agreements gave Tesco the right to up its offer if a rival bid came in, options over some of the directors' shares, and restricted Dobbies in soliciting competing offers, Hunter said.
He added that he still did not think the Tesco offer reflected the true value of Dobbies, and reserved the right to make another offer if there was “a material change in circumstances”.
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