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Guy Hands' hostile green energy takeover bid for Novera exploded in acrimony today after blue-chip shareholders rallied behind Novera and accused the buyout baron of “ethically questionable” takeover tactics.
Novera Energy is the subject of a 62½p tender-offer takeover bid from Infinis, owned by Hands' private-equity empire Terra Firma.
Infinis is a larger landfill gas and windpower producer rival and is aiming to sweep up the 58% of Novera that it does not already own. However, in a rarely seen show of City shareholder strength, eight leading investors including 3i, Aviva and Caledonia, speaking for 32% of Novera's shares, have issued a “hands-off” notice.
In a statement to the Stock Exchange, it was announced the investors had written to Novera's board backing it and saying Infinis's offer “substantially undervalues” Novera.
Privately the shareholders are seething at Hands' tactics.
“This is the worst form of private-equity practice,” said a fund manager at one of Novera's leading shareholders.
“Not only is this offer from a business which offered 90p for Novera's shares last year but the terms of their offer mean that if they get more than 50% of the business minority shareholders could be wiped out. That sort of threat is ethically questionable.”
