Two major Mothercare shareholders have thrown their support behind the maternity chain after it rejected two takeover attempts from US rival Destination Maternity.
Board members have been backed by investors Fidelity and Allianz, which own more than a fifth of the retailer between them. They have dismissed the takeover as “opportunistic” and “inadequate”, according to the Telegraph.
It comes after Mothercare board members said that Destination Maternity’s two previous offers, resulting in a £270m valuation, undervalued the business.
Destination Maternity’s chief executive Ed Krell is understood to by flying into London this week for crunch talks with Mothercare’s major investors. It is understood that Mothercare shareholders will not be easily convinced that a reasonable deal can be struck with Krell.
UK takeover rules mean that Destination Maternity faces a deadline of 5pm on July 30 to come back with a final firm offer. If it fails to do so, it cannot return with a new offer for another six months.
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