A confrontation between the two families who control Arnotts department store in Dublin has escalated after company chairman Richard Nesbitt SC rubbished a buyout bid for the business from rival O'Connor family as a "stunt".
Mr Nesbitt, whose family has been involved in Arnotts since 1867, said he had no intention of selling the store to the O'Connor family, who have been involved since the 1940s and own 24.7 per cent of the firm. Mr Nesbitt said he was empowered to reject the bid on his own given his control of a family investment company that owns 60 per cent of Arnotts.
He accused the O'Connors of total disregard for the business. "As far as I'm concerned, this episode is over. I've no interest in selling. I never have done and that's it," he said.
The O'Connors insist their offer stands and that it must be put to the other members of Mr Nesbitt's family who hold shares in the business. Their opposition to Mr Nesbitt's strategy for the company spilled into the open on Friday when it emerged that the O'Connors were making a €200 million bid for the business, in addition to debt of €310 million.
"In fact, I learnt of it after contact by an Irish Timesjournalist who was able to read to me from the terms of the document," said Mr Nesbitt of the bid in a letter yesterday to the O'Connors.
"Whatever your intentions, negotiation through the media is most damaging to the company Arnotts Holdings Ltd."
His assertions were immediately dismissed by a spokesman for the O'Connor family. Their offer values Arnotts shares at €50.57 each, more than twice the €25 per share that Mr Nesbitt has offered to buy them out. "What is particularly damaging to the company at this time is to ascribe a value of only €100-€130 million as Richard Nesbitt has," the O'Connors' spokesman said.
Asked whether the O'Connor bid was merely a manoeuvre to extract a higher price for their shares, the spokesman said: "To that we would say, clearly based on the valuation we have given the company, the O'Connor offer is very attractive and an opportunity must be given to all shareholders to discuss this."
However, Mr Nesbitt says his 60 per cent control of family company Art Ltd means he is empowered to vote against the O'Connor bid in respect of the entirety of Art Ltd's 60.4 per cent stake in Arnotts. He also says he has support from members of his family.
The O'Connor offer was tabled near the close of business on Friday in advance of an Arnotts board meeting this morning at which it is to decide to enter a final negotiation on its €750 million "Northern Quarter" plan to redevelop its properties around Henry Street. Developer Seán Mulryan and British company Centros Miller are in contention for that deal.