BET pushes up forecast as bid deadline nears
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.BET yesterday stepped up its defence against the pounds 1.9bn hostile takeover bid from Rentokil by announcing an upwards revision of its profit forecast for the current year from pounds 142m to pounds 146m.
The estimate, however, drew accusations of "incompetence" from Rentokil, which has until the end of next week to decide whether to increase its 203p cash-and-shares bid for the rival business services company.
BET, which made its first profit forecast for the year to next March just a fortnight ago, said it also expected earnings per share to rise by at least 35 per cent to at least 11.1p. The group has already forecast that its dividend for1996/97 will rise at least 20 per cent to a net 6.15p per share.
Shares in BET rose by 2p to 205.5p and Rentokil closed 3p higher at 362p.
Sir Christopher Harding, BET chairman, said: "This powerfully demonstrates three key points about BET - the strength and momentum of our current growth, the prudence with which we forecast, and the inadequacy of Rentokil's offer."
BET has until tomorrow to publish anymore fresh financial information to the market and any revised bid by Rentokil from the present 203p cash- and-shares offer must be made no more than a week later. Most analysts are expecting a slightly raised offer from Rentokil to clinch victory but some believe that it could squeeze success without giving ground.
Clive Thompson, Rentokil's chief executive, said that the release of yet another profit forecast is a "sheer sign of management incompetence".
Mr Thompson attacked the latest profit forecast as lacking back-up details, adding: "How can shareholders regard this as credible? I believe there is too little information as to where this late contribution to BET's profit estimate has come from."
BET said the estimate, unlike the previous forecast, is based on full information for the year to the end of March.
There is a growing view in the City that Rentokil has all but won the pounds 1.9bn takeover. Fidelity, which owned more than 5 per cent of BET at the start of the bid, is thought to have reduced its holding of 50 million shares to 18 million.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments