More shots fired in Rentokil battle
Sir Gerry Robinson’s attempt to seize control of Rentokil’s board descended into a war of words yesterday as the two sides traded statements.
Five minutes before the Takeover Panel’s “put up or shut up” order expired, Robinson’s takeover vehicle Raphoe Management announced that it had decided it was not necessary to make a takeover offer. Almost nobody had expected Robinson to make a takeover offer because he lacks financial backing, plus Rentokil has a well publicised pension deficit that acts as a de facto poison pill.
Instead, Robinson is pushing ahead with a plan to get himself installed as chief executive. Raphoe said it had agreed with Rentokil shareholders a performance-related pay deal for Robinson’s putative remuneration package, which could exceed £70m.
Sir Gerry’s vehicle said in a statement: “Raphoe understands that on this basis, shareholders have entered into discussions with the Board of Rentokil.”
Rentokil immediately shot back with a statement to the markets claiming: “Raphoe’s inference that the Board is discussing implementing Raphoe’s proposals, with or without any changes to Robinson’s excessive package, is just plain misleading.”
Sir Gerry said discussions with Rentokil’s shareholders will continue. The former ITV man has the support of Franklin Templeton which holds 14.7 per cent of the shares and could call an extraordinary general meeting to put Sir Gerry’s proposal to the vote. Robinson is unlikely to do this, however, without assurances of support from over 50 per cent of shareholders.
