Musgraves makes Budgens move
Friday, 10 May 2002Cork based retailers Musgraves, which runs the Supervalu and Centra chains in Ireland, has made an approach to buy the UK regional supermarket chain Budgens.
Last year Musgrave paid over £115 million sterling to buy a 28% stake in Budgens and loan stock which it can convert to ordinary shares taking its stake up to 43.5%.
It is clear the privately owned family group is considering taking up this option, and then making a bid for the remaining 56% stake, which would cost over €180 million at Friday's Budgens share price.
In a statement to the London Stock Exchange, Budgens only said it had received an approach which may lead to an offer for the company; Musgraves refused to comment.
The news will fuel speculation that Musgrave will consider taking a stock market listing to help fund the deal - a move which chairman Hugh Mackeown has vigourously denied in the past.
