The two suitors for TDG, Wincanton and Laxey Partners, have been told they have a month to launch a formal bid. Both have indicated that they are interested in making an offer, but so far neither has launched a formal bid.
Now, following representations from TDG, the City Takeover Panel has ruled that the each bidder has until 5pm on 20th June to announce a firm intention to make an offer for TDG or announce that it does not intend to make an offer.
Under Rule 2.8 of the takeover code, if a company decides not to launch a bid, it is then not allowed to make another offer for the company for six months.
Earlier this month, Wincanton confirmed that it had approached the board of TDG with an indicative cash offer of 281.25p per share – 15p per share higher than the indicative offer by Laxey Partners on 27 February.
Laxey owns some 22 per cent of the issued share capital of TDG. Speaking at the launch of its offer, chairman Preston Rabl said: “We have been investors in TDG for over a year and are excited about the opportunity to back TDG, its management team and employees. The company has a strong customer base, which we value highly, and we support the company’s strategy.
“We believe that our proposal is fair and attractive to shareholders, representing approximately a 29 per cent premium on the one month average and approximately a 34 per cent premium on the three months average share price,” he said.