FBI may launch hostile bid for LB

The CSE suspended trading in the shares of Lanitis Bros. and Alkis Hadjikyriakou (Frou-Frou) pending the possible submission of a hostile bid by FBI to acquire LB.

FBI has called an emergency board meeting Friday morning to discuss the possibility of submission of a hostile bid, which if approved would be counter to the bid interest by 3E of Greece to acquire LB at 17.2 cent valuing the whole company at CYP 43 mln.

According to Financial Mirror calculations, the 3E bid is significantly lower than the book value of LB, estimated at 24 cent. The Financial Mirror analysis also found that LB has CYP 5 mln cash, which means the cost of acquisition for 3E is in fact CYP 38 mln, or 15.2 cent.

Rumours are also circulating, though not confirmed, that Mike Spanos the current General Manager of LB holding 6.3% of the share capital and possibly backed by Evie Lanitis with a 7.62% are opposed to the deal.

On the other hand, LB principal shareholder Vladimiros Lanitis holding a 50.6% stake is supporting the 3E bid.