Tesco's Booker Deal Could Leave It In A Value Pickle: Gadfly
On the eve of the shareholder vote on Tesco's near £4 billion takeover of Booker, a stand-off has developed between investors in both companies.
Artisan Partners, one of the biggest shareholders in Tesco, on Monday published a letter it wrote to the supermarket's board last week to urge it not to increase its offer for the wholesaler. Instead, it argued, Britain's largest grocer should walk away if the deal does not receive the required approval from the target's shareholders.
About two weeks ago, US hedge fund and Booker shareholder Sandell Asset Management Corp pressed Tesco to up its bid.
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