Sweetened takeover bid for bar and restaurant chain Loungers rejected by shareholder
A shareholder of Loungers has dismissed an attractive private equity takeover offer as ‘not good enough’.
The board of the bar and restaurant chain, which owns Cozy Club, had backed a 310p per share share offer from US takeover company Fortress, which valued it at £338 million.
After opposition from shareholders, Fortress yesterday raised its offer to 325p per share or £354 million in a bid to win them over.
But Judith MacKenzie, head of Downing Fund Managers, which owns a 1.56 percent stake in Loungers, said Fortress was only “paying lip service” to improving the offer.
She said: ‘It’s a poor offer. They need to resharpen their pencils. It’s not good enough.’
MacKenzie said Downing would consider supporting a bid of between 360p per share and 380p per share. “They’re miles away,” she added.
Takeover: The board of Loungers, owner of Cozy Club (pictured), had backed a 310p per share share offer from US takeover company Fortress, which valued it at £338 million
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