“Call off Booker takeover, Tesco investors demand” is the main business headline in The Times (£) this morning. Two of Tesco’s biggest shareholders have criticised its proposed £3.7 billion takeover of Booker Group, saying that the deal risked destroying value and could damage its “fragile” recovery. Schroders and Artisan Partners, which hold about 9 per cent of Tesco shares, said the supermarket group should withdraw its offer. (The Times £)

Schroders said in its letter to Tesco chairman John Allan that the price Tesco was paying for Booker would make creating value for shareholders “extremely challenging”. Schroders said it would encourage other Tesco investors to oppose the deal. The letter is signed by Nick Kirrage, a Schroders fund manager, and Jessica Ground, the global head of stewardship at the firm. (The Financial Times (£), The Guardian)

The letter stated: “Tesco have had to pay a premium and have made an assumption that profits are going to continue to grow in the future… History suggests that the vast bulk of acquisitions destroy value for the acquiring shareholders in instances where you buy a high multiple.” (The BBC, Sky News)

Schroders fund manager Nick Kirrage told The Telegraph that the “risk of the deal does not carry proportionate reward” (The Telegraph). It is not the first time Tesco has come up against opposition for the mega-deal, which would create a food distribution giant responsible for £53.2billion of annual sales - weeks before the deal was announced, the grocer’s non-executive director Richard Cousins surprisingly resigned. (The Daily Mail)

Poundland places 99p Stores into administration - group blames previous management for failure of 60 ‘unprofitable’ outlets. (The Financial Times £)

Diageo marches to more upbeat tune, writes The FT, which interviews the chief executive of the world’s largest distiller who says it has ‘perfect blend’ for growth. (The Financial Times £)

BrewDog, the self-described “punk” beer company, has backed down in a row over the name of a family-run pub, blaming “trigger-happy” lawyers for the legal action. (The Guardian)

Huishan Dairy, the Chinese company whose share price plunged 90% last week in Hong Kong, has confirmed it met with almost two dozen creditors after failing to make interest payments and revealed it had lost contact with the head of its treasury operations. (The Financial Times £)

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