Pope rejects CI Traders' bid
West Country pub operator Eldridge Pope has rejected a takeover proposal from Channel Islands-based CI Traders. The Eldridge Pope directors rebuffed an offer from CI Traders worth 180p per share a full 15p more than the current tender of pub entrepreneur Michael Cannon. Now CI Traders is considering a hostile bid for Eldridge Pope if Cannon's existing offer expires today. CI Traders, which operates the Blubeckers restaurant chain, has already offered 50p per share in cash and a convertible independently valued at 130p per share. Cannon, who owns about 10% of Eldridge Pope's shares, is trying to acquire a 29.99% stake in the company the most he can own before having to offer to buy the whole company. Sources at Eldridge Pope claim CI Traders' offer was not strong enough to put before shareholders. "The board does not feel they have heard anything strong enough to put to shareholders," one source told The Sunday Times. Takeover talks with Wolverhampton & Dudley broke down earlier this year over price issues. In June, Eldridge Pope parted company with its chief executive Michael Johnson and began a "back to basics" policy that involved selling a number of its under-performing Toad sites. At its latest half-year results Eldridge Pope reported a £120,000 loss compared to a £1.9m profit in the previous half year. The company's latest suitor is one of the largest AIM-listed companies, with a market capitalisation of £200m. Eldridge Pope chief executive Susan Barratt has admitted the company might not survive in its current form. A trade sale, taking the company private, acquisitions or a merger are among the options.
