Takeover Panel looks into Owners' bid defence
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.THE Takeover Panel is investigating statements made by Owners Abroad in its defence against a pounds 300m bid from Airtours to make sure nothing misleading was said and no material information was left out.
A spokesman for the panel said there was no evidence of a breach of the Takeover Code. Samuel Montagu, merchant bank advisers to Owners, had been informed of the panel's inquiry.
Institutional shareholders, who have seen their shares drop from a high of 152p during the bid to a close of 72.5p yesterday, made it plain they would oppose large pay-offs to the outgoing directors of Owners. The resignations of Howard Klein, chairman and chief executive, and Roger Allard, group managing director, were the result of institutional dissatisfaction.
Mr Klein earned pounds 364,000 last year and Mr Allard pounds 418,000. Both have three-year rolling contracts.
Richard Smith of Henderson Financial Management, which owns 3.8 per cent of Owners' ordinary shares, said it would be incorrect to give the full contract compensation. Another large institutional shareholder said he thought institutions would be against any pay-off to either man.
The non-executive directors of Owners - Christopher Rodrigues, chief executive of Thomas Cook, and Sir Terence Higgins - are negotiating the compensation packages. Mr Rodrigues said: 'We will act to defend the interests of shareholders.' He added he was sad to see Mr Klein and Mr Allard go.
On Thursday, Owners warned pre- tax profits this year would be nearer pounds 15m than the pounds 30m the market was expecting. Mr Rodrigues said Owners misjudged the market and got its product mix and pricing wrong. Thomas Cook's summer sales are 30 per cent ahead.
(Graph omitted)
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments