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UK: Shareholders split on Tesco-Booker tie-up ahead of vote

By  |  February 26, 2018

Shareholders will vote on Tesco’s US$4billion acquisition of wholesale giant Booker this week as chief executive Dave Lewis hopes to seal the deal to create the UK’s largest food business.

Investors at both Tesco and Booker will hold separate meetings on Wednesday,  February 28, to vote on the takeover, which needs 75% backing from Booker investors to proceed.

Doubts have been growing over whether the deal will receive sufficient approval, with Tesco criticized by some advisory groups for undervaluing the wholesaler, which owns Londis and Budgens. The deal has received a mixed reception from shareholder advisory groups amid concerns that Tesco’s offer undervalues Booker.

However, Britain’s biggest supermarket was handed a boost on Wednesday, February 21, when advisory firm Pensions Investments and Research Consultants urged shareholders to back the merger.

Full Content: East Anglian

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