Laurel is second bidder stalking Yates
The sale of Yates may turn into an auction after the managed pub group revealed that a second potential bidder, now known to be the Laurel Pub Company, has approached the company.
Yates, which has agreed a management buyout backed by US venture capitalist GI Partners, said its independent directors have "received a request from another party for information on the company".
Laurel was not named by Yates, but later confirmed to thepublican.com that it is the second player in the game. Laurel is in the process of selling its community estate in order to focus on the town centre market.
Having just lost out to W&DB on the sale of the Wizard Inns business, adding the Yates Group high street operation, which includes the Yates and Ha Ha Bar chains, would put Laurel's expansion strategy back on track. Yates independent directors, charged with getting the best deal on behalf of shareholders, are to make the same financial information given to the MBO team available to the new bidder.
However, Yates said that at this stage, there is no formal proposal on the table.
Seven members of Yates's management team, led by chief executive Mark Jones, have formed a bid company called Thorium for their proposed takeover.
If successful, the management team will acquire an 18.25 per cent stake in Thorium, with GI owning the rest.
Related articles:
Yates directors approve share plan to go private (11 June 2004)
GI Partners to table £93.4m Yates bid (7 June 2004)
Yates in talks on management buy-out (3 June 2004)
