The four executive directors of Londis are set to back down over a lucrative share options package, which would hand them 51 per cent of the company in the event of a takeover.
The turnaround is expected after a shareholder action group gave warning that it would block every resolution at the group's annual meeting next week, and install its own representatives onto the board to help to block a merger.
Adrian Costain, the action group's candidate for the chairmanship, said: “Shareholders in the action group voted unanimously that they wouldn't accept any sale that would allow executives to crystallise their options.”
Costain has also complained to the DTI regarding the way the group is being run. He has argued that there was no need for the group to be sold at all.
Costain also feels the approach by the Big Food Group was mischievous. He said: “Shareholders may be attracted by his upfront offer but it may not be in the best interests of the shareholders.”
A spokesman for the Big Food Group said: “It is disappointing that these comments have been made before we have had the opportunity to meet to discuss how we could work together.”
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