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4-Traders Homepage  >  Equities  >  London Stock Exchange  >  Booker Group    BOK   GB00B01TND91

BOOKER GROUP (BOK)
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Real-time Quote. Real-time CHI-X - 02/22 10:08:23 am
225.6 GBp   -0.18%
09:29aNORGES BANK : - Form 8.3 - Booker Group PLC
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08:12aBOOKER : Form 8.5 (EPT/RI) - Booker Group Plc amendment
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07:11aBOOKER : Advisory groups split on Tesco deal
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Booker : U.S. activist investor says Booker should get better offer from Tesco

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02/09/2018 | 11:15am CET
FILE PHOTO:A branded sign is displayed outside of a Booker Wholesale store in London

LONDON (Reuters) - A U.S. hedge fund which owns a stake in Booker Group (>> Booker Group) said on Thursday it plans to oppose Tesco's (>> Tesco) 3.7 billion pound takeover bid unless the wholesaler secures a better deal.

LONDON (Reuters) - A U.S. hedge fund which owns a stake in Booker Group (>> Booker Group) said on Thursday it plans to oppose Tesco's (>> Tesco) 3.7 billion pound takeover bid unless the wholesaler secures a better deal.

Sandell Asset Management said in a statement that it holds the equivalent of 1.75 percent of Booker and had expressed its concerns about the Tesco takeover in a letter to Booker's board.

Sandell believes that fair value for Booker shares is between 255 pence per share and 265 pence. That is above Booker's closing price of 221.5 pence on Thursday and the value of Tesco's bid when the deal was agreed in January 2017, when the cash-and-shares offer was worth 205.3 pence per share.

Sandell's criticism of the deal with Britain's biggest retailer comes ahead of a vote by Booker's shareholders to approve the takeover at a meeting due to be held on February 28. Booker needs the backing of 75 percent of its shareholders for the deal to proceed.

Tesco's acquisition of Britain's largest wholesaler would increase the supermarket operator's dominance of Britain's food market.

The deal has attracted criticism from elsewhere, with Tesco shareholders Schroders and Artisan Partners disclosing they were against the acquisition last March. A Tesco non-executive director, the late Richard Cousins, also quit the board of the retailer because he was opposed to the takeover.

Sandell said the premium Tesco offered to Booker, which was 12 percent at the time the deal was announced, was "well below the average" paid to British companies that have been bought in the last decade, which it said was about 25 percent.

The activist hedge fund also said that Tesco's vulnerability to online competitors meant its shares were "poor currency".

It argued that Booker should pay out all of its profits for its 2018 financial year in its closing dividend to shareholders, rather than as much as 65 percent as agreed with Tesco.

"In Booker, Tesco is getting a great asset and a great management team on the cheap," said Thomas Sandell, the founder of the hedge fund.

"Unless the consideration is increased, we do not believe that shareholders should vote in favour of the deal at the upcoming shareholder meeting."

Sandell, which also has offices in London, was set up in 1998 and its most notable campaign in Britain is an unsuccessful attempt to force transport company FirstGroup to break itself up in 2013.

Booker and Tesco declined to comment.

(Reporting by Ben Martin; editing by Alexander Smith and Elaine Hardcastle)

By Ben Martin

Stocks treated in this article : Tesco, Booker Group
Valeurs citées dans l'article
ChangeLast1st jan.
TESCO 0.00% 207.3 Delayed Quote.-0.93%
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Latest news on BOOKER GROUP
09:29aNORGES BANK : - Form 8.3 - Booker Group PLC
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08:12aBOOKER : Form 8.5 (EPT/RI) - Booker Group Plc amendment
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Financials ( GBP)
Sales 2018 5 520 M
EBIT 2018 197 M
Net income 2018 -
Finance 2018 151 M
Yield 2018 3,37%
P/E ratio 2018 24,34
P/E ratio 2019 21,39
EV / Sales 2018 0,71x
EV / Sales 2019 0,68x
Capitalization 4 053 M
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Booker Group Technical Analysis Chart | BOK | GB00B01TND91 | 4-Traders
Technical analysis trends BOOKER GROUP
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TrendsNeutralBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 4
Average target price 2,32  GBP
Spread / Average Target 2,5%
EPS Revisions
Managers
NameTitle
Charles A. Wilson Chief Executive Officer & Executive Director
Stewart C. Gilliland Non-Executive Chairman
Guy Farrant Chief Operating Officer & Executive Director
Jonathan Prentis Executive Director & Group Finance Director
Andrew Graham Cripps Independent Non-Executive Director
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