Bilton chairman Hugh Free has accused Slough Estates of “sinking to desperate levels” in its battle to take over the company.
Free made the comments after the Takeover Panel forced Bilton to make a statement responding to Slough’s latest allegations that some Bilton directors had unresolved conflicts of interest because of their involvement with a large family shareholding.
Three Bilton directors resigned from Glenhazel – the trust which owns 29.4% of Bilton’s shares – when Slough’s made its £264m offer. But in a statement earlier this week, Slough pointed out that two of them, Ron Groom and company secretary Priya Ponnaiyah, remained as trustees of the Percy Bilton 1954 Settlement, which holds the majority voting rights in Glenhazel.
In its stock market statement, Bilton describes Slough’s statement as “misleading and inaccurate” and repeats its assertion that the trustees of Glenhazel are legally obliged to act in the interest of all its shareholders, not just those of the Settlement. The company says that Groom and Ponnaiyah have taken legal advice and that lawyers are satisfied that no conflict of interests exists. “The board of Bilton regrets Slough’s attempt to impugn their integrity,” says the statement. Bilton has also pointed out that although the Settlement holds majority voting rights in Glenhazel, it only holds 4% of its economic value.
Free said: “During the course of this offer, Slough and its advisers have sunk to desperate levels in an attempt to deflect Bilton shareholders from the real issue – the value, both present and potential, inherent in Bilton’s portfolio. Whilst Slough’s record hardly bears close inspection, I do not intend to burden shareholders with irrelevancies. The facts are that Slough is attempting to buy Bilton on the cheap and its offer should be rejected.”
EGi News 15/10/98
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