A fund activist US considers that the provision of the Tesco under-evaluates Booker

(Reuters) – The fund american activist Sandell Asset Management, which owns a participation equal to 1.75% of the Booker, wants to oppose the purchase of the wholesaler uk by Tesco (LON:TSCO) to 3.7 billion pounds (4.2 billion euros), unless he finds a better offer.

The fund said in a press release have expressed his misgivings about the offer from Tesco in a letter addressed to the board of directors of the Booker.

Sandell estimates that the fair value of the share Booker is located within a range of 255 to 265 pence, which is above the closing price of 221,5 pence of the title Thursday, and 205,3 pence offered by Tesco in January 2017, during the announcement of the redemption.

The shareholders of the Booker must approve the buyout at a meeting scheduled for 28 February. The offer must receive the vote of 75% of the shareholders of Booker.

The redemption of the Booker allows the first chain of supermarkets in the uk build on its leading position in the Uk with its entry into the fast-growing segment of the delivery service to restaurants, cafés and pubs.

Sandell believes, in particular, that the premium offered by Tesco to Booker, which is 12% compared to the price of the security at the time of the announcement of the redemption, is “well below average” and those paid to companies in the uk redeemed during the last decade. The fund considers the latter to 25%.

(Ben Martin Catherine Mallebay-Vacqueur for the French service)