The founder of furniture retailer DFS today made a last-minute bid to gain shareholder approval for a takeover offer.
Chairman Lord Kirkham made an increased and final offer valuing the company at around £507m, up from the £496m previously put forward.
He said that after “considerable debate” directors had persuaded him to hike the offer by an additional 10p per share.
Lord Kirkham said: “To avoid any doubt, I wish to make it clear that this offer is final and will not be increased in any circumstances.
“This offer has been recommended by the independent directors as being fair and reasonable and in the best interests of DFS and its shareholders.”
It is the third time Lord Kirkham has revised his offer price in an attempt to encourage investors to swing behind his bid. He originally made a takeover approach valuing DFS at £445m in March.
Last week two leading investors vowed to oppose the bid.
M&G Investment Management and Morley Fund Management – which own nearly 14.5% of the company – pledged to vote against the previous offer of 445p a share on the grounds that it was too low.
Lord Kirkham, who founded the business in 1969 and owns 10% of the company, requires support of 75% of shareholders who are due to vote on the proposal on September 7.
Earlier this year he said he believed Doncaster-based DFS would be better placed to overcome growing competition in the home furnishings market by becoming a private company.
The entrance of major retailers from other sectors to the home furnishings market has increased pressure on DFS, which has 70 stores in the UK.
References: EGi News 02/09/04
