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AA’s largest shareholder is slowing down the takeover

AA’s largest shareholder puts the brakes on breakdown company takeover after calling £ 219 million price tag ‘ridiculous’

The AA’s largest shareholder has put the brakes on a takeover of the breakdown company after calling the £ 219 million price tag ‘ridiculous’.

London-based investor Albert Bridge Capital has said it plans to oppose the 35 pence-per-share deal proposed by private equity firms Towerbrook Capital and Warburg Pincus, which has been recommended by the AA board. .

A deal needs the approval of 75 percent of shareholders, which means Albert Bridge with a 20 percent stake has a big say.

Jammed: Albert Bridge Capital has said it plans to oppose the 35p a share deal

Jammed: Albert Bridge Capital has said it plans to oppose the 35p a share deal

US hedge fund Davidson Kempner, with a 16 percent stake, has already blessed the deal.

In a letter to shareholders, Albert Bridge chief investment officer Drew Dickson said the private equity deal fundamentally undervalues ​​the AA, The Sunday Telegraph reported.

He added that the bankruptcy firm’s stock price was “ artificially and overly suppressed ” by the pandemic.

The price of 35p per share is an 86 percent decrease from the company’s price of 250p when it floated in 2014.

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