Musgrave faces new rival in battle for Londis
Musgrave will face a new rival in their battle for convenience store business Londis this week with the launch of another £60m (€90m) bid for the group, it was reported today.
Londis – owned by the shopkeepers who hold shares in the wholesaling and distribution operation – is currently seeking approval of an offer from Musgrave.
But that deal could be stalled by an 11th-hour offer from Lancelot, a consortium set up by two former directors of rival cornershop chain T&S Stores.
According to media reports, Lancelot will make a formal bid this week after becoming frustrated in its attempts to put its proposals to shareholders.
The move is designed to put pressure on the Londis board before shopkeepers meet on June 22 to vote on the Musgrave bid that could net them £31,000 (€46,000) each.
Lancelot is headed by Geoff Purdy and David Crellin who were employed by T&S Stores prior to its acquisition by supermarket giant Tesco.
It is understood to have financial backing from Icelandic bank Kaupthing.
Details come just days after Iceland-to-Booker retail group Big Food dropped its interest in buying Londis following a review of financial data.
Big Food said the review raised a number of questions regarding profitability and financial condition – “both of which seem to understate the company’s potential”.
