LONDON - Sir Gerry Robinson is in for a big day tomorrow, as he has to make up his mind if he wants to go ahead with his plans to acquire Rentokil.
It is widely expected that the star of BBC's I'll Show Them Who's Boss will withdraw from the race, but it is never safe to predict what exactly the former Granada boss will do City analysts say that Robinson will call an emergency meeting of Rentokil's shareholders' and get them to fire the current management duo of Doug Flynn and Brian McGowan and get himself appointed as chairman.
The Takeover Panel had given him until mid-day tomorrow to "put up or shut up." That notice has been issued after Robinson had indicated that he was planning a reverse takeover via his Raphoe management. Even Franklin Templeton, the US fund manager that has a 14.7 percent stake in Rentokil has backed Robinson and it is expected that the company would also be interested in calling for an emergency shareholders' meeting. The speculated £3 billion bid may never happen, say analysts who feel that Robinson is not yet ready to go the whole mile. Janus, another US investor is also expected to back Robinson and he may choose to reveal this by noon tomorrow.
Janus owns 3.9 percent of Rentokil and any calls for an emergency meeting would have to be met in seven weeks meaning that Robinson could be buying time here.
Robinson has also promised to return £600 million to Rentokil investors and this may prove to be the turning point, which nets him the deal. On the reverse side, Rentokil may launch a defense against Robinson's proposals. Either way, tomorrow promises to be an interesting day.
Posted
on : Sun, 16 Oct 2005 16:50 GMT | Business News
By : Rob Davis
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