Rentokil talks break down
Former Granada boss Gerry Robinson today abandoned his three-month campaign to take charge of pest control-to-hygiene firm Rentokil Initial.
Robinson ruled out making a full-scale takeover bid worth around £3bn (€4.4bn) on Monday, instead pinning his hopes on shareholders overthrowing the company’s current management and appointing him executive chairman.
But talks with investors over his proposals – which would have seen him take a 2.5% stake in the company worth £70m (€103.3m) depending on performance – broke down today.
Rentokil emerged as a target for Robinson after he set up Raphoe Management in July as a vehicle for investing in under-performing UK companies.
A 19.8% fall in profits at Rentokil in the first half of this year fuelled speculation that investors were becoming frustrated at the time it was taking executives to turn the company around.
However, Rentokil’s board consistently opposed Robinson’s interest and branded his demands “excessive” earlier in the week.
Robinson said today: “I am sorry that we have not found the right way forward. This was a genuine attempt to make a change with the existing shareholders staying involved.
“This has been an unsettling time for employees of Rentokil Initial and I apologise for that. I wish them and chief executive Doug Flynn every success for the future.”
Last month, Robinson called on the board of Rentokil to let him mastermind the turnaround of the company whose services range from security to rat-catching.
He warned the board that Raphoe would consider a takeover offer, or more likely call a meeting of shareholders, if it rejected the proposals.
But he ruled out a bid for the company on Monday following discussions with shareholders which he hoped would result in his proposals being accepted.
In a statement today, Raphoe said: “These discussions have continued until this morning, but have regrettably not resulted in an agreement being reached that was satisfactory to the parties involved.
“Accordingly they have been terminated.”
