Londis activists celebrate victory

The Londis Shareholders Action Group is celebrating a PR victory over the directors of the cooperative retail supply group.

The action group was set up in December, by 2,000 Londis shopkeepers and major shareholders after the four directors planned to accept a bid for the company from Budgens owner Musgrave. The deal would have netted them £20m between them, as well as 51 per cent of the company.

But the action group, which is advised by Grandfield, managed to secure media attention by publicising the corporate governance issues raised by the plan, which shareholders were unaware was being considered.

The PR offensive forced the bidding into the open, and Londis is now looking at offers from rivals said to include Big Food Group, the Co-op and Somerfield.

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