Founder’s Redrow bid in the balance

The owner of Wolverhampton Wanderers FC has tabled a preliminary bid valuing the group at 152p a share, equivalent to around £562m, through his Bridgemere Group in association with hedge fund Toscafund.

In order to make a joint bid the UK Takeover Panel has to approve the “joint offeror status” of Bridgemere, which holds at 40.4 per cent stake, and Tosca, which owns 16.7 per cent.

But Fidelity, which owns 10.5 per cent of the business, complained to the Panel that the “joint offeror status” would be unfair to smaller shareholders.

The offer – which had to be formally submitted by 5pm yesterday and is rumoured to have risen to as much as 170p a share – could be abandoned if Fidelity successfully breaks up the collaboration between Mr Morgan and Tosca.

Redrow’s independent non-executive directors have agreed to put the offer to shareholders with a neutral recommendation that will allow Redrow’s shareholders to make up their own minds.

Fidelity is understood to have said that with more than 57 per cent of the company, such a pairing would be unfair to smaller shareholders, who would have little power to vote down the deal, which needs 75 per cent backing.

Mr Morgan returned to Redrow as executive chairman in a boardroom coup in 2009 and has been successful in reviving its fortunes.

Bridgemere increased its shareholding in Redrow from 29 per cent as part of an £80m fundraising to bolster its London division.