SCOTTISH WIDOWS said yesterday that it will vote against an improved 260p a share bid for Macdonald Hotels from the company’s founder, because it still undervalues the company.
The move came as Britain’s eighth largest hotel and leisure group announced that it had recommended a revised £156.8 million offer from Donald Macdonald through his bid vehicle, Skye Leisure Ventures.
Mr Macdonald had proposed a 240p buyout in June, but disgruntled shareholders insisted the price was too low.
Johnny Russell, fund manager at Scottish Widows, which owns a 6.45 per cent stake in Macdonald, described the new offer as disappointing.
He said: “We fundamentally believe it is the wrong time to sell the company, with the bid coming after September 11 and Sars.”
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The new offer has already received acceptances from 37.9 per cent of shareholders, after the management team and Aegon Asset Management, which holds a 6.81 per cent stake, voted in favour of the deal.
Shares in Macdonald Hotels rose 19p to 258p.