The proposed management buy-out of Countrywide is under increasing pressure as shareholders representing around 29% of the estate agency threaten the £960m deal.
Private equity firm 3i is backing chief executive Harry Hill’s offer which needs 75% of shareholder acceptances to succeed.
Anglo American hedge fund Polygon yesterday announced it has increased its stake in Britain’s largest estate agent to 7.61%, up from 6.4% declared on December 15.
Countrywide chairman Christopher Sporborg will today meet with Polygon and Scottish Widows Investment Partnerships, which own 2%, to convince them to back the £960m deal.
Standard Life, which owns 3.4% of the company, US investment group Artisan, which is an 8% stakeholder, and hedge fund Boussard & Gavaudan who have bought a 5.1% stake all oppose the offer.
First Pacific – a 2.9% shareholder – is also understood to be against the takeover.
The offer combines 490p a share in cash in Countrywide and 0.17 Rightmove shares for each Countrywide share.
Countrywide owns 21.5% of Rightmove, the UK’s biggest property website. Its shares rose 10% yesterday, valuing Countrywide at 562p a share at yesterday’s closing price.
Christopher Sporborg, chairman of Countrywide, wrote to shareholders to say the offer was “fair and reasonable” urging them to vote for the offer which was “the only one which has been made for Countrywide”.
Shareholders will vote on the scheme on Monday.
References: EGi News 10/01/07
