Baugur Group withdraws from Somerfield bid

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Saturday, July 9, 2005

Baugur Group withdraws from Somerfield bid

The Icelandic investment firm Baugur has decided to withdraw from the Somerfield bid because of legal action against some of it's core employees including its CEO, Jón Ásgeir Jónsson, and chief of board, Haukur Loftsson. Baugur Group will also sell each share it owns in Somerfield.

Baugur Group had previously made EUR1.5 billion bid as had been covered on Wikinews.

Baugur makes a US$1,8 billion bid for Somerfield

Baugur used to own 5.5% of Somerfield's shares, but they will be sold to the Iranian businessman Roberts Tchenguiz for 190 pence per share, in total about 55 million pounds. Baugur will probably earn 30 million pounds by selling them.

Baugur has also reached agreement with it's partner companies that if they will be able too buy Somerfield they will repay Baugur what it has spent on research.

Baugur decided to withdraw from the bid so that the legal actions would not harm it's partner companies.