Londis has postponed its planned shareholder meeting after a rival bidder emerged for the convenience store chain.
The Big Food Group has said it will match Musgrave's £40 million bid but will pay Londis directors £600,000 rather than the £20 million it would share if bought by the Irish food company.
This would mean shareholders will receive £20,300 ñ most Londis store owners hold one share in the company. This amount is double what was expected under the Musgrave deal.
Bill Grimsey, chief executive of the Big Food Group, said: “We are not going to sit around and see an opportunity go past. We have always wanted to put in place a distribution network that can service a strong chain of neighbourhood stores.”
Adrian Costain, a Londis shareholder who has formed an action group to campaign for a “fairer deal”, said: “This is excellent news and exactly what we were calling for. Musgrave needs 75 per cent of shareholders to accept its bid and there is every indication they won't get that majority.”
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