FORMER Abbey National banking executive Gareth Jones was yesterday reported to be in discussions with venture capitalists about making an approach for Somerfield, the supermarket chain.
The news comes just weeks after Somerfield rejected a takeover bid of almost pounds 600m from retail entrepreneurs John Lovering and Bob Mackenzie. On Wednesday Somerfield chairman John von Spreckelsen conceded that the pace of its recovery had not been rapid enough as the Bristolbased retailer reported a 24% rise in underlying annual profits.
A property revaluation unveiled alongside Somerfield’s results took the company’s asset valuation above pounds 1bn or around 200p a share.
April’s bid from Mr Lovering and Mr Mackenzie was worth only 120p a share, helping explain why the company turned down the approach. Mr Jones, who headed Abbey’s wholesale banking division since it floated in 1989, left the bank in October 2001 with a reported payout of pounds 1.8m. Until August he was also a nonexecutive director of Somerfield and is understood to be discussing his plans for a takeover with two private equity firms. A spokesman for Somerfield refused to comment on market speculation.
Somerfield has been involved in a battle to win back market share after hitting problems integrating Kwik Save, which it acquired in 1998. The company which has around 1,300 stores – including 700 Kwik Save outlets – achieved preexceptional profits of pounds 25.8m after likeforlike sales improved 1% in the year to April 26.
