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Hicks closes in on Hillsdown
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June 3, 1999: 7:18 a.m. ET
Candover said to withdraw after U.S. buyout firm raises offer to $1.32B
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LONDON (CNNfn) - U.S. buyout group Hicks, Muse, Tate and Furst may have delivered a knockout blow in its battle for the British food maker Hillsdown Thursday by raising its offer to 147 pence per share, equating to a total value of 822 million pounds ($1.32 billion).
The sweetened offer for Hillsdown, a maker of jams, biscuits, marmalades and herbal teas, topped a rival offer by U.K. venture capital firm Candover Investments by two pence. It also marks a 6-pence premium over Hicks' initial bid.
Candover's bid is contingent on it acquiring at least 75 percent of Hillsdown, The Wall Street Journal reported. Hicks' sharebuilding made it arithmetically unlikely that Candover can respond.
On Wednesday, Hicks stepped up the pressure on Candover when it bolstered its stake in Hillsdown from 16 percent to 29.9 percent.
Hillsdown said Thursday that Candover had withdrawn its offer and would not pursue its bid. Candover officials could not immediately be reached for comment, and company advisers did not immediately return phone calls.
Hicks' latest cash bid values Hillsdown equity at 537 million pounds. Hicks also agreed to assume Hillsdown's debt, placing a total value of 822 million pounds ($1.32 million) on the deal.
The Candover bid of 145 pence per share valued Hillsdown at 816 million pounds.
Hillsdown (HLD) shares were down about 1.4 percent at 144 pence in London Thursday. Candover (CDI) stock was unchanged at 927 pence.
-- from staff and wire reports
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Hillsdown
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