Last checked at 17 May 2010 07:00
FOR IMMEDIATE RELEASE
17 May 2010
LIBERTY PLC
("LIBERTY" OR "THE COMPANY")
STATEMENT RE: PRESS COMMENT
The Board of Liberty, the iconic British brand and Regent street emporium, notes the weekend press comment that states a potential bidder for the Company was "frozen out" of the bidding process and was prevented from making a higher offer.
Liberty and its advisors reiterate that Pyrrho Investments Ltd ("Pyrrho") had ample opportunity to increase its proposed 185p a share offer for the Company but refused to do so on an unconditional basis. At the same time Liberty received a proposed 186p per share offer from BlueGem (the "BlueGem Proposed Offer") that was unconditional and had received hard irrevocables to vote in favour of the BlueGem Proposed Offer from shareholders owning 86.3% of Liberty's Ordinary shares.
Pyrrho claimed that it would have made a higher offer for the Company on or before 7 May 2010, but when offered the opportunity to make a higher bid it declined to do so. Yet comments attributed to Pyrrho in the weekend's press claimed it had informed the Liberty Board before 7 May 2010 that it was prepared to make a higher bid than 186p a share.
Neither the Liberty Board nor the Company's shareholders received an increased offer from Pyrrho before 7 May 2010.
Pyrrho's argument that the Liberty Board's acceptance of BlueGem's unconditional 186p a share offer is materially to the detriment of Liberty shareholders is totally without foundation. Liberty's shareholders have the benefit of a proposed offer of 186p a share that is supported by four months of due diligence and financial backing.
In contrast Pyrrho, which as a 21% shareholder in MWB Group Holdings Plc, the majority shareholder in Liberty, has been aware of the possibility that Liberty could be sold since the end of July 2009. Yet its earliest indication of interest was 4 May 2010 when Pyrrho said it was considering a bid for Liberty of between 190-200p a share. But two days later it proposed a lower offer of only 185p a share and Liberty was informed by Pyrrho's advisors that it was not prepared to increase the offer on an unconditional basis over 185p.
The Board of Liberty made an informed choice based on the submitted proposals it had received on 6 May 2010. This was the correct way to proceed and the Board acted properly and in the best interests of the Liberty shareholders.
Ends.
For further information, please contact:
Liberty Plc
Richard Balfour-Lynn, Chairman +44 (0) 20 7706 2121
Baron Phillips Associates (Financial PR Adviser)
Baron Phillips +44 (0) 20 7920 3161
Seymour Pierce Limited
Nicola Marrin +44 (0) 207 107 8000
Jonathan Wright