UK: Somerfield to revalue store estate - report

UK: Somerfield to revalue store estate – report

UK supermarket group Somerfield is reportedly planning to reassess the value of its 1,300-store estate in its forthcoming full-year result. According to a report in the Daily Telegraph the move is an attempt to justify its rejection of a takeover bid approach from retail entrepreneurs John Lovering and Bob Mackenzie. Somerfield rejected the 120p (US$1.98) per share offer last week on the grounds that it substantially undervalued the company.

June 9, 2003

UK supermarket group Somerfield is reportedly planning to reassess the value of its 1,300-store estate in its forthcoming full-year result.

According to a report in the Daily Telegraph the move is an attempt to justify its rejection of a takeover bid approach from retail entrepreneurs John Lovering and Bob Mackenzie. Somerfield rejected the 120p (US$1.98) per share offer last week on the grounds that it substantially undervalued the company.

Somerfield has confirmed that the value of its property estate will feature in its 2 July results briefing, but refused to comment on analysts’ forecasts that the £542m book value will be doubled, reported AFX News.