ROCK PACIFIC, a Bahamas-based investment vehicle backed by the currency speculator Joe Lewis, plans to seek permission to return immediately with a fresh takeover bid for Countryside Properties, if a rival 275p-a-share offer by Alan Cherry, chairman of the housebuilder, founders next week.
If Rock is refused consent to mount its own bid, it will lobby for Countrysideﾴs existing management team to be removed.
Rock has complained that its efforts to make a rival bid in time for Mondayﾴs deadline were thwarted by Countryside failing to provide an independent valuation of group assets.
Any move to oust the existing management would be likely to receive the backing of at least some Countryside shareholders. One investor yesterday privately admitted having been unhappy with Countrysideﾴs management team for some time and said it would also call for Mr Cherry and the rest of the management to be removed if his bid failed.
Mr Cherry is today expected to extend the deadline for acceptances until next Tuesday, when the offer is due to close.
To buy himself more time, Mr Cherry may be able to gain Takeover Panel consent to extend his bid. However, it is believed that Rock has told the Panel that it will appeal if an extension is granted. The bid currently has a 90 per cent acceptance threshold. Because Rock Pacific, which controls 28.1 per cent of Countryside stock, has committed itself to vote against the deal, it looks destined to fail unless a new solution is found.
Mr Cherry has the option of persuading HBOS, his backer, to lower the acceptance threshold or of trying to increase his bid with a view to doing a deal with Rock Pacific to sell its stake. Alternatively he could let the offer lapse and walk away.
However, HBOS is unlikely to agree to an acceptance level below 75 per cent, particularly as Rock would be compelled to stay on as a troublesome minority investor after committing itself not to accept the bid.
Meanwhile, even if Mr Cherry wanted to raise his offer it is thought unlikely that Rock would accept a bid of less than 300p a share.
By Jenny Davey, The Times Online
