Londis retailers look set to reject Musgrave’s offer for the group, because of their anger over massive payouts it will trigger for four Londis directors.
A telephone poll for The Grocer of 190 Londis retailers (10% of the entire membership) indicated 57% believed a Musgrave takeover would be good for them, with 27% undecided and 16% disagreeing.
However, when they were asked whether the directors deserved the £20.4m payout that would be triggered by the deal, 69% were opposed with only 22% in favour.
And 46% said they were so annoyed by the payout that they would vote against the deal, compared with 38% who would
vote for it, and 16% who were undecided.
The 38% in favour contrasts with the 75% vote that Londis would require from members, at the extraordinary general meeting that is scheduled for December 30, in order for the deal to go through.
Many retailers contacted for the poll expressed their anger about the level of the proposed payout. One described it as an “absolutely disgusting amount of money” and another said it was “hideous”. But some defended the plan, with one saying it was a “reward for their hard work”.
Opposition to the payments has been growing since they were revealed last week, and at the weekend a group of Londis members set up Londis Shareholders Action Group.
A leading member, Adrian Costain who runs a Londis store in North Liverpool, said the group was not necessarily opposed to a takeover by Musgrave, but required far more information before it could make an informed decision.
However, it was opposed to the deal that had been brokered because of the size of payments it would trigger for the directors.
Another member of the group, Kishor Patel, who owns Londis stores at Houghton Regis and Elstree, complained that Londis business development managers were visiting retailers trying to encourage them to vote for the deal.
He said: “This is the busiest time of the year for me and they should be trying to help me sell more. Instead they are trying to sell the deal.”
As The Grocer went to press Big Food Group buoyed the opposition to the deal by unveiling plans for a counter bid and urging retailers to vote against the deal (see below).
>> p28 Letters
John Wood
A telephone poll for The Grocer of 190 Londis retailers (10% of the entire membership) indicated 57% believed a Musgrave takeover would be good for them, with 27% undecided and 16% disagreeing.
However, when they were asked whether the directors deserved the £20.4m payout that would be triggered by the deal, 69% were opposed with only 22% in favour.
And 46% said they were so annoyed by the payout that they would vote against the deal, compared with 38% who would
vote for it, and 16% who were undecided.
The 38% in favour contrasts with the 75% vote that Londis would require from members, at the extraordinary general meeting that is scheduled for December 30, in order for the deal to go through.
Many retailers contacted for the poll expressed their anger about the level of the proposed payout. One described it as an “absolutely disgusting amount of money” and another said it was “hideous”. But some defended the plan, with one saying it was a “reward for their hard work”.
Opposition to the payments has been growing since they were revealed last week, and at the weekend a group of Londis members set up Londis Shareholders Action Group.
A leading member, Adrian Costain who runs a Londis store in North Liverpool, said the group was not necessarily opposed to a takeover by Musgrave, but required far more information before it could make an informed decision.
However, it was opposed to the deal that had been brokered because of the size of payments it would trigger for the directors.
Another member of the group, Kishor Patel, who owns Londis stores at Houghton Regis and Elstree, complained that Londis business development managers were visiting retailers trying to encourage them to vote for the deal.
He said: “This is the busiest time of the year for me and they should be trying to help me sell more. Instead they are trying to sell the deal.”
As The Grocer went to press Big Food Group buoyed the opposition to the deal by unveiling plans for a counter bid and urging retailers to vote against the deal (see below).
>> p28 Letters
John Wood
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