Somerfield Share Discussion Threads

[faxxer] 03/3/2005 14:14

Baugur likely to make another move on Somerfield - Times article:



Cardsaver programme:

[blunderbuss] 02/3/2005 18:03

Thanks Kingdwg, I just hate giving away any more than I have to to that gentleman in No 11!

[kingdwg] 02/3/2005 17:18

blunderbus
It would take till after that to complete now any way so we're safe from cgt on the deal this year.

[blunderbuss] 02/3/2005 17:15

I would prefer them to wait until after April 5!

[richdvk] 01/3/2005 08:01

let's hope so, indications are good although far off 310

from today's The Times

*Hopes that Baugur will return for Somerfield (LSE: SOF.L - news) with an increased offer of between 210p and 215p

[blunderbuss] 28/2/2005 07:34

Rich - I hope Collins is right - it looks as though Baugur are going to come back with a bigger offer.

[morks] 27/2/2005 21:11

Thanks for your thoughts, I just wondered if any one considered that Tchenguiz story : to be likely?

[richdvk] 27/2/2005 19:06

Some of Somerfield's biggest investors have stood by the board despite the opportunity to turn a quick profit on a company whose shares have not visited these levels in the past five years. They are backing the management's turnaround plans, which slowly appear to be bearing fruit as Somerfield is positioned firmly in the convenience store sector.

The possibility of another bidder breaking cover may now be diminished given the management's confidence in rejecting Baugur's overtures and the support of major shareholders. Even if another bidder did emerge it would have to offer well north of 200p to have any chance of persuading investors to part with their shares.

Earlier this month ABN Amro analyst James Collins went as far to say the Somerfield store portfolio and its business could be worth as much as 310p a share if it was valued on the lines of other convenience stores takeover bids.


full article:

[faxxer] 27/2/2005 12:00

Some in-depth details about the most active investors in British retailing:

[morks] 25/2/2005 20:00

does anyone think another bidder might emerge? serious answers only - not interested in ramps!

[karvaz] 25/2/2005 17:27

Old Crow - good to see you on SOF, enjoy your posts on Barc, did well to stay out today! Weekend press should be intresting on SOF!

Have a good weekend.

[blunderbuss] 24/2/2005 20:42

Old Crow - agreed that it is good not to be Baugur'd. Best to stay in for the endgame with solid asset backing?

[old crow] 24/2/2005 16:42

Even though the Crows are not in
glad to see SOF not being sucked in by Baugur
like they treated BFB.

Keep Crowing

[kingdwg] 24/2/2005 16:19

Looks like they're squaring up for a fight then. Should be interesting.

[barman92] 24/2/2005 14:55

Board rebuff the 'approach', share price falls 3% or so.


24 February 2005

Somerfield plc ('Somerfield' or 'the Company')

Response to Baugur Group ('Baugur') proposal

On 9 February 2005, Somerfield announced that it had received, and would
investigate, an approach from Baugur regarding a possible cash offer for the
Company at 190p per share. Baugur's proposal was subject to a number of
pre-conditions.

The Board of Somerfield has given careful consideration to Baugur's approach.
It sought further clarification of the basis of Baugur's proposal, which has
now been received. The Board's conclusion was that there could be no certainty
that this proposal would deliver a formal offer to shareholders at an
appropriate level. The Board decided, therefore, that it would not be in the
interests of shareholders to give further consideration to this proposal or
comply with the stated pre-conditions. Baugur has been informed of the Board's
decision.

The Board of Somerfield remains committed to delivering value to its
shareholders. The Company has recently made a number of strategic acquisitions,
and is in the process of finalising negotiations for the proposed purchase of
approximately 140 Texaco forecourt convenience stores. The Board is confident
that these moves, together with the store regeneration programme, will
significantly strengthen Somerfield's competitive position.

ENDS

For further information contact:

Cardew Group

Anthony Cardew 0207 930 0777

[kingdwg] 24/2/2005 11:50

The price is certainly starting to lend credence to a counter offer. I always thought that was Bauger's mo to flush out a counter bidder, just didn't work with bfp.

[faxxer] 24/2/2005 08:29

Hi sharw

I thought the reason that they would not revalue was that it would produce a CGtax liability. It would certainly be a costly exercise and maybe was not done for that reason alone. Given that all their recent property sales have been at a substantial premium to the book prices I think the fact that Somerfield's property is significantly undervalued is widely accepted.

[sharw] 24/2/2005 00:00

faxxer - thanks for the link.

The interesting thing about the article is that it centres on the value of the property. I had a go about this at the last two AGMs and at the last one Von S conceded the point following a 'desk top excercise' that had been done, but still refused a revaluation saying that he prefered a 'hidden value' on (in my book off) the balance sheet.

[faxxer] 23/2/2005 12:47

Agreed kingy, perhaps it is because the shares have only trebled from their low point in June 2000.

[kingdwg] 23/2/2005 11:27

Well spotted faxxer, good report, don't know where they get the "ailing" bit from though. Not from where I've been standing over the last year or so anyway.

[faxxer] 23/2/2005 11:02

Tchenguiz brothers behind (new 220p)Somerfield bid
James Quinn, Daily Mail,
23 February 2005

[cheekycharlie] 22/2/2005 16:45

Interesting trading close to the 190p offer price. Both buys and sells. I guess people are hedging their bets for and against...!!!

[sharw] 17/2/2005 14:05

The Telegraph has a bit more on the ABN Ambro note:

Somerfield shares yesterday rose 2 to 188.75p, partly helped by a report from brokers ABN Amro which said it believed that Somerfield's board should reject the 190p a share indicative offer.

Analyst James Collins, who has raised his price target from 180p to 230p, wrote: "We don't think management should throw the towel in, or at least not at this price."

He added: "The longer we've thought about it, the more we believe that management should rebuff the bid and rely on its shareholders to see the longer-term potential in the business. Or, alternatively, management should seek backing to take the group private itself."

Somerfield's board is hopeful of making an announcement about Baugur's indicative offer by tomorrow.

[kingdwg] 17/2/2005 09:19

Full story from Times here

[kingdwg] 17/2/2005 08:51

There was an rns yesterday regarding the forecourt stores