Unions at Arnotts, the Dublin department store that is the subject of a €227 million takeover bid, will today demand that trustees of the company's pension fund, whose 13 per cent shareholding could make or break the mooted acquisition, obtain independent financial advice.
All three management nominees to the trust are Arnotts directors, prompting concern among staff that they be seen to be acting in the fund's best interests, said Mandate spokesman Mr John Douglas.
Union representatives were instructed to seek a meeting with the trustees at which it will be requested that they take independent advice on the takeover offer, which was last week granted a two week extension.
Disquiet was also expressed at a perceived "information deficit" surrounding the bid by the Carrgran consortium, with staff expressing dismay that they had first learned of its approach in media reports.
Given the lack of consultation with the workforce, it was too early to pass judgment on the merits of the Carrgran's indicative tender of €12.75 per share, Mr Douglas said.
Fears that a change of ownership could lead to redundancies were dismissed by sources close to Carrgran, which is controlled by Lehman Brothers investment bank, corporate financier Mr Peter O'Grady Walshe and former Arnotts trading manager Mr Mark Delaney.
Carrgran wanted to build on Arnotts potential and would not engage in asset stripping, the sources said.
The Arnotts board, led by its chairman Mr Michael O'Connor, must decide if the offer is an adequate reflection of the group's value.
It previously rejected bids from Carrgran of €11.50 and €11.80 per share, saying they failed to mirror the company's value and its future prospects.
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