The Big Food Group (BFG) is increasing the pressure on Londis shareholders to consent to a takeover.
Chief executive Bill Grimsey is keen to expand his retail empire, but Londis shareholders seem more concerned with escalating their assault on the Londis board.
This week a shareholder action group is expected to write to management to renew their demands for the resignation of the non-executive directors.
BFG is keenly pursuing the Londis group and has promised to offer each shareholder more than £20,000. This is double the amount promised in the failed Musgrave deal.
KPMG has now been appointed to resolve Londis's corporate governance issues, carry out a strategic review of the company and conduct an orderly auction.
BFG will meet with KPMG this week to establish the timetable for the auction process. BFG's chairman George Greener, said: “We intend to make a formal offer for Londis at the earliest opportunity.”
