The Londis takeover saga has stepped up its pace post-Christmas, as the Big Food Group launched its bid to charm shareholders of the convenience retailer.

Chief among BFG's raft of plans ñ should it be successful in a takeover ñ is the promise to run Londis as a separate company to the BFG's own frozen food to cash and carry operations. Londis's independent retailers would also be allowed to continue with existing or improved trading terms and the Londis wholesale delivery network would be retained.

BFG chief executive Bill Grimsey said yesterday: “We are eager to put our business case to Londis shareholders so they know the facts about how we anticipate working with them if we are successful.”

The charm offensive comes in the wake of a controversial and subsequently withdrawn offer from Irish chain Musgrave, which would have seen half of the £40 million purchase price tag on Londis go to four of the group's directors. BFG has not as yet made a formal bid, but is thought to want to reduce the directors' cut to £600,000.

KPMG has been called in by Londis independent directors to advise on all bids that are on the table or in the pipeline. A number of potential bidders are rumoured to be hovering, but a Londis spokesman said that price would not be the deciding factor. A shareholder meeting on Tuesday is expected to be “lively”.

Topics