// Major investment firm Schroders backs Findel’s rejection of Mike Ashley’s £140 million attempted takeover
// Ashley made a formal bid for the business last month after he raised his shares to above 30%
Findel has gained the support of major investment firm Schroders in rejecting Mike Ashley’s £140 million attempted takeover.
The online retailer’s largest shareholder Ashley – who has been a shareholder in Findel for four years – made a formal bid for the business last month after he raised his stake in the company to above the 30 per cent threshold.
Findel, the parent company of online retailer Studio.co.uk, is one of many retailers which Ashley has eyed up recently through his company Sports Direct.
Meanwhile, Schroders – who has an 18.85 per cent share of Findel – wrote to its board that it fully supported the existing management’s decision to reject Ashley’s offer.
The firm also considered the Sports Direct tycoons’s bid as “significantly undervaluing” Findel.
It also said that Ashley’s offer did not recognise Findel’s “future prospects”.
Sports Direct approached Findel in March after taking stock from a single investor at 161p a share – which took its holding to 38.6 per cent, prompting Ashley to make his mandatory offer under City takeover rules.
Ashley said the offer provides an opportunity for Sports Direct to further support Findel and “maximise the value of its existing business”.
If the bid were to be accepted, Sports Direct said it had no plans to change Findel’s management team.