Bovis boss Greg Fitzgerald makes takeover bid for Galliford Try. The housebuilding and construction hybrid Galliford Try (GFRD) has rejected an audacious takeover bid from rival . Bovis made an approach to Galliford Try for an all-share deal that would have seen it acquire Linden Homes, Galliford Try’s housebuilding division, and its regeneration arm. Greg Fitzgerald, the chief executive of Bovis, ran Galliford Try for 12 years before leaving in 2016. Following a Sky News report, Galliford Try said last night that it had rejected the bid because it did not “fully value” the two divisions. Bovis’s offer would have seen Galliford Try’s beleaguered construction arm remain an independent company owned by Galliford investors.
GVC boss Kenny Alexander owns up to illegal bets in Turkey. Ladbrokes owner takes blame in American grilling. The boss of the betting giant behind Ladbrokes Coral and Foxy Bingo has been forced to apologise after a grilling in America’s gambling capital over historic operations in illegal markets. Kenny Alexander accepted last week that he was “ultimately responsible” after allegations that GVC Holdings (GVC) used an anonymous payments firm to operate in Turkey, where gambling is restricted. Alexander had denied any knowledge of GVC’s use of Allied Wallet — which also handled payments to porn websites and debt collectors — to hide payments from “black” and “grey” markets where gambling is illegal or unregulated. However, Nevada regulators berated the chief executive, saying he was “lackadaisical” about the use of payment companies and there was “clearly a significant lack of protocols and controls” at GVC. Terry Johnson, a member of the gaming board, said: “I’m at a loss to understand where exactly the buck did stop in the company if it didn’t stop with you, and why are we to be assured that going forward you’re going to be at the helm of this company in a different manner.”
Store owners demand audit of Domino’s Pizza Group (DOM) ad cash. Powerful pizza-shop owners have cranked up the pressure on Domino’s bosses by hiring auditors to look into how the company spends millions of pounds of advertising money. Domino’s Franchise Association, which represents about 90% of the 67 operators in the UK and Ireland, has recruited KPMG to study the chain’s “national advertising fund”, which is invested on their behalf. Franchisees must pay 4% of sales into the fund, which amounted to £50m last year. The company says the money goes into advertising and promotion to build the brand. The franchisees want to see how it is spent. Domino’s has agreed to co-operate with KPMG, but it has been accused of dragging its feet by the operators.
Malaysians scoop up Mike Ashley’s headquarters. One of the Battersea power station development’s Malaysian owners is to become Mike Ashley’s new landlord at Sports Direct’s Derbyshire headquarters. The Malaysian Employees Provident Fund (EPF), which manages the pension savings of more than 7m workers, is believed to have bought the chain’s warehouse complex at Shirebrook for £120m in deal that will see Sports Direct lease it back for at least 15 years. The high street chain is said to have been “opportunistic” in selling the site at a time of strong demand for industrial property.
FirstGroup braced for huge writedown. Besieged transport giant FirstGroup (FGP) is expected to write off millions of pounds on its South Western Railway franchise as it struggles with sluggish growth. Investors are braced for the bus and rail operator to slash the value of the franchise, which carries millions of passengers on routes between southwest England and London. It will be a new blow for the heavily indebted group, which is under attack from an activist investor, the US hedge fund Coast Capital. Coast Capital, which holds a 10% stake, has requisitioned a vote to oust First’s chief executive, chairman and four other non-executives. It wants the company, which declined to comment, to quit UK rail. The shares ended last week at 110p, valuing the business at £1.3bn.
A £100m legal claim against HSBC Holdings (HSBA) private bank brought by hundreds of investors in controversial tax avoidance schemes — including football manager Steven Gerrard and the theatre impresario Lord Lloyd-Webber — has been described by the lender as “hopeless”. The investors were promised tax relief for putting money into film and game productions. They made a cash contribution and borrowed money from an Ingenious entity to make more investments. However, they claimed the money was, in fact, borrowed from HSBC and had to be paid back almost immediately. The investors said this prevented the money being invested. HSBC said the investors were making “broad, unparticularised and historic allegations of fraud, relating to events taking place almost 15 years ago”. The “unfocused allegations” were “hopeless”. It denied conspiring with Ingenious and said the terms of the loans did not prevent their use for investment. It said that even if it were liable for losses, the claims were made after the time limit of 12 years.
The smartphone industry is in a fix. Mobile phone operators are trying to stoke excitement for super-fast 5G networks, but Donald Trump keeps killing the mood. The American president’s crusade against Chinese telecoms giant Huawei over spying fears is throwing well-laid plans into disarray. IQE (IQE) admitted on Friday that the Huawei export ban could delay orders. Chief executive Drew Nelson said the ban would have “limited impact” on sales in the medium to long term. Short-sellers have played their part. IQE shares took a hit in February last year when Muddy Waters and ShadowFall, two short-sellers, questioned the finances and accounting practices. Muddy Waters accused IQE of being an “egregious accounting manipulator”. Nelson hired new auditors to check the numbers. Despite that, about 12% of IQE’s shares remain out on loan, according to Markit. Still, IQE’s best days may lie ahead. As the world’s biggest wafer maker, it is well positioned to benefit as 5G connectivity — 20 times faster than 4G — becomes mainstream. Demand for its tech could swell as 3D sensing expands into areas such as driverless cars. Analysts at Stifel have put a price target of 90p on IQE. Investors may want to wait until the Huawei fog lifts and more 5G investment starts flooding in. Hold.
