A £1.1BN bid for supermarket chain Somerfield will be put to its shareholders after details of a formal takeover offer were finally confirmed.
It emerged earlier yesterday that the UK's fifth-largest grocer, which runs Kwik Save and Somerfield stores on Teesside and in Durham, North Yorkshire and Tyneside, had agreed terms with a consortium that included property tycoon Robert Tchenguiz, private equity firm Apax Partners and investment bank Barclays Capital.
A 5pm deadline imposed by the Takeover Panel for the consortium to make a formal takeover passed but full details of the proposal were finally submitted late last night.
The consortium did not comment on the cause of the delay, although it said earlier in the day that it needed to finalise financing.
The development is the latest twist in a takeover saga that dates back to February, when retail investment group Baugur made a £1bn offer.
That was rejected by Somerfield, which later received approaches from the Tchenguiz consortium and a group led by property group London and Regional.
Yesterday's offer of 197p a share, which still needs the support of shareholders, is lower than the 205p a share analysts first expected from the Tchenguiz party.
However trading conditions have worsened over the summer while London & Regional also pulled out to leave just one potential suitor.
Shareholders are expected to vote on the offer at an extraordinary general meeting on Novemeber 28.
Commenting on the offer, Somerfield chairman John von Spreckelsen said: "We believe that the proposals represent fair value for the business and its prospects, and after careful consideration, the independent directors are unanimous in recommending to shareholders that they vote in favour of the proposals."
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