UK - Pension Corporation's take over of Marconi remnant telent could still falter, despite overwhelming support for the bid by shareholders.
Co-Investment No.5 LP Incorporated (CILP), which represents the Pension Corporation, revealed today it had won acceptances for its bid offer from investors representing 94% of telent shares.
But said it would allow the offer to lapse on 28 November if agreement could not be reached over the appointment of three trustees to the board of telent’s UK pension scheme, Stanhope Pension Trust.
The Pension Corporation made an official offer for the entire telent company on 25 September 2007 but the Takeover Panel granted a further extension to the buyout company’s consultation period after the Pensions Regulator appointed the trustees.
The appointments were made following concerns from Stanhope’s board that the acquisition of the sponsoring company, whose size is small in relation to the plan, could have implications for plan members.
However, CILP successfully argued that the appointments constituted a breach of the offer. It said while CLIP and telent were continuing to have constructive dialogue with the relevant parties, the circumstances that breached the offer continued