Somerfield shareholders have urged the supermarket group to ‘walk away’ from any bids instead of accepting a cheap offer.
Mark Webster from State Street Global Advisors, which owns a 3% stake in Somerfield, said: “It looks unlikely that the highest consensus expectation will be met but I am happy to back management in this case and would prefer them to walk away rather than sell the company too cheaply.”
Another shareholder said: “The bid process is taking longer than expected but we don’t sense that management is being distracted. If the bidders go away or a sensible offer is not made, we are confident that management will continue to grow and improve the business.”
Two consortia are currently bidding for the retailer and a decision was expected to be reached earlier this month.
Mark Webster from State Street Global Advisors, which owns a 3% stake in Somerfield, said: “It looks unlikely that the highest consensus expectation will be met but I am happy to back management in this case and would prefer them to walk away rather than sell the company too cheaply.”
Another shareholder said: “The bid process is taking longer than expected but we don’t sense that management is being distracted. If the bidders go away or a sensible offer is not made, we are confident that management will continue to grow and improve the business.”
Two consortia are currently bidding for the retailer and a decision was expected to be reached earlier this month.
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