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A Loungers shareholder has ruled out an improved private equity takeover offer as “not good enough”.
The board of the bar and restaurant chain, which owns Cozy Club, had backed a 310p-a-share bid from US buyout firm Fortress, valuing it at £338m.
Following opposition from shareholders, Fortress yesterday raised the offer to 325 pence per share or £354 million in a bid to win them over.
But Judith MacKenzie, director of Downing Fund Managers, which owns a 1.56 per cent stake in Loungers, said Fortress was only paying “lip service” to improving the offer.
She said: ‘It’s a paltry offer. They need to sharpen their pencils again. It’s not good enough.’
MacKenzie said Downing would consider backing an offer of between 360p and 380p per share. “They are miles away,” he added.
Takeover: The board of Loungers, which owns Cozy Club (pictured), had backed a 310p-a-share bid from US buyout firm Fortress, valuing it at £338m.
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