Fayed brothers censured over Fraser bid

THE FAYED brothers breached a general principle of the City Code on Takeovers and Mergers during their 1985 takeover bid for House of Fraser, the stores group which owns Harrods, writes John Moore.

The Panel on Takeovers and Mergers announced its findings after a two-year investigation which was started after a report on the Fraser takeover prepared by the Department of Trade and Industry was published in 1990.

Censuring the Fayeds, the Panel said they had given a misleading impression that the pounds 615m spent on the acquisition had been derived from their business interests. But the Panel stressed that it was not alleging that statements published during the takeover were deliberately misleading.

The Panel said that it found no reason to hold Kleinwort Benson, which advised the Fayeds, responsible for any breach of the code.

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