Report: Investment Group Still Interested in Sanctuary
June 18, 2007 at 5:46 AM (PT)
The battle for SANCTUARY may not be over yet, reports U.K.'s THE GUARDIAN, with investment bank CROSBY CAPITAL PARTNERS preparing a counterbid to trump UNIVERSAL's 20p-a-share offer (NET NEWS 6/15). CROSBY, which has offices in HONG KONG and LONDON, has appointed lawyers from SJ BERWIN to help launch its offer for SANCTUARY.
It will have to top the takeover offer from UMG which SANCTUARY accepted last week. The price offered by CENTENARY, a division of UNIVERSAL, values SANCTUARY at £44.5m, and UNIVERSAL will also take on debts of £59.6m.
Although that offer was accepted, SANCTUARY's board will have to consider any reasonable bid from CROSBY, which is rumoured to be considering an offer at 25p a share. "If they come in with a credible approach, the board has a fiduciary duty to take a look," said a source close to SANCTUARY.
WARNER MUSIC GROUP has also been watching SANCTUARY. The market seems sceptical that a battle for the group will materialize with its shares closing at UNIVERSAL's offer price of 20p on FRIDAY.