[Dow Jones] Bid on Wyevale Garden Centres' (WGC.LN) at 555p from Tom Hunter and Baugur, which Wyvale has recommended, is in line with expectations, says Richard Ratner of Seymour Pierce.
"We feel that despite the huge potential in the business, given the time frame of say 4 years to achieve it and the execution risk, that an offer, of 555p a share is fair and reasonable and we would unequivocally urge acceptance."
Pierce adds: "As to another bidder? Highly unlikely, as the numbers do not add up for a traditional venture capital buyer and Hunter has a significant stake already." FY pretax profit of GBP20.7M is below expected GBP22.1M. Shares closed Thursday at 552.5p. (DWE)
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