Amstrad buyout in the balance
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.A KEY GROUP of institutional investors in Amstrad is planning to vote against the controversial pounds 113m offer by Alan Sugar to take the consumer electronics group private.
The decision follows secret informal discussions last Monday among about 20 institutional shareholders. The group is believed to control 20 per cent of Amstrad's equity - enough to block the proposals - but it has yet to state its views on Mr Sugar's 30p a share offer.
However, it is understood to be deeply unhappy with his terms and is poised to block the proposal at the shareholders' meeting next Thursday.
The group comprises representatives from institutions with relatively large stakes in Amstrad. At least one, which speaks for more than 10 million shares, is thought to have made a firm decision to vote against the plan. If the others follow, Mr Sugar's plans are likely to run into serious difficulty.
Separately, the Prudential and Postel, which speak for about 3 per cent of Amstrad between them, had previously announced their opposition to the buyout.
Many private investors in the company are also angry about the proposals. They have formed a shareholders' pressure group and obtained support from investors who speak for at least 2 million shares.
However, their campaign received a setback in the High Court yesterday when Justice Vinelott threw out an attempt by Edward Northcote, a shareholder, to block the buyout plan.
In his judgment, Justice Vinelott said that Mr Northcote had 'not advanced any sound reason or objection' to block an Amstrad meeting next week.
Although the judge awarded costs to Amstrad, the company said it would not be asking Mr Northcote to foot the bill.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments