Look at Comet alternative, owner urged

Kesa Electricals’ largest investor said it has put forward a plan to the retailer’s board for its loss-making Comet business in the UK that it wants considered as an alternative to disposal.

By The Newsroom

Published 5th Jul 2011, 10:15 BST

Activist shareholder Knight Vinke, which has a 19.3 per cent stake in Kesa, Europe’s third-biggest electrical goods retailer, said yesterday it met with Kesa last week.

It said it made it clear that it would not support any plan to close down or liquidate Comet if there were other alternatives for the 250-store chain, which employs about 10,000 people.

“We confirm that we have not at any stage said that we would be opposed to a sale of Comet,” said Knight Vinke in a statement.

“On the contrary, we would have no objection to Kesa selling Comet today, subject to Kesa obtaining an acceptable price and the process not being drawn out beyond the two to three months that the board has indicated it will take to sell the business.”

But it said that since there was no certainty this could be achieved it had recommended “an alternative plan” to Kesa’s board. Knight Vinke wants the board to assess this proposal.

Europe