Tuesday June 28 , 2011 : Shareholder confusion as Independent Directors to reject offer!
A statement issued by Guoco Group (Guoco) giving a more detailed explanation on its intentions with regard to the Rank Group's (Rank) London Stock Exchange listing has prompted Rank's Board to change its stance and reverse its recommendation, in part, that shareholders accept the deal as the Independent Directors of Rank intended to do so just last week.
In response, Guoco issued a statement stating its intention to continue with the listing whether it attains a 75 percent hold on the company or not.
While Rank's Board still maintain that the offer under-values the company and are concerned that the threat of de-listing remains, its Independent Directors have reversed their recommendation, on the advise of Goldman Sachs International, and now no longer intend accepting the offer with regard to their own beneficial holdings in the company.
They have further advised those shareholders who are risk-averse to sell and those who are not, to also reject the offer.