Lookers takes a tumble as bid collapses
SHARES in the car dealership group and parts supplier Lookers tumbled yesterday after an announcement revealing that a consortium led by veteran investor Jack Petchey had pulled out of a takeover deal.
Shares in Lookers fell by 18 per cent to 57p, a level it last seen in April before news of a possible bid emerged.
Lookers, which was advised by Rothschild, had let it be known that it would have almost certainly accepted an 80p a share offer, but yesterday it announced that the consortium had put in an offer “at a level materially below” the previous 80p level.
The revised offer came after three weeks of due diligence, so there will be fears in the market that trading is not going as well as expected. But a source close to the board said Petchey’s new offer was an attempt to gain control of the firm on the cheap.
Petchey’s Trefick vehicle, along with Moor Park Capital Partners, a real estate private equity investment advisory firm, and Brett Palos, a venture capitalist and real estate investor, made a joint approach to Lookers in May.
Lookers said last night that it had considered the revised proposal and unanimously resolved not to pursue it. “The board remains committed to the continued development of the company for the benefit of all its shareholders and stakeholders.”