02 August 2006 – Daily Star
The Billionaire Reuben brothers and their backers gazumped Barclays Capital yesterday in the battle for retirement homes builder McCarthy & Stone.
Their £1.1 billion offer, valuing the builder at £10.75 a share, was agreed by McCarthy chairman Keith Lovelock hours after being made.
He said he was recommending it to McCarthy shareholders “with no hesitation”.
Management is withdrawing its recommendation for the earlier offer of £10.30 a share from a rival consortium led by Barclays and venture capital firm Permira.
It will have to pay the Barclays team a £10 million break fee.
David and Simon Reuben hold a third of the consortium, while Bank of Scotland has 58% and retail entrepreneur Sir Tom Hunter 8.4%.
Lovelock said: “The price proposed is a great endorsement of the quality of the McCarthy & Stone business”.