- Carluccio’s previously dropped 46% over the past 12 months, compared with a 31% decline for the FTSE All-Share but now up 20% from 79 last week to 95+ after the news on Tuesday of a preliminary BID APPROACH -http://www.stockopedia.com/news/announcement/CARL/090505carl001910.htm.
- Identity of bidder as yet unknown but rumoured to be a PE fund, most likely Cinven or Blackstone given their existing investments in the sector (Gondola and Tragus respectively). Richard Caring, owner of London restaurants The Ivy and Le Caprice, holds 12% of Carluccio’s and is tipped as a possible counter bidder
- Company was founded in 1991 by Antonio and Priscilla Carluccio with the aim of offering quality, authentic Italian food at reasonable prices.
- 42 outlets and this year opened its second overseas restaurant in Dubai - has fared better than most rivals due to its lower prices (average spend of £12 a head) and strong balance sheet.
- In its recent trading update Carluccio's also pledged its commitment to a "measured" store opening programme, which will see it open at least five stores by September (3 already opened in the UK so far in its current financial year, at Bristol, Leicester and Earlsfield in South-west London).
- Analysts apparently speculating that any offer would have to be pitched closer to 150p to be considered, given that the company is cash-positive and still has huge development potential. Seymour Pierce notes: "This approach brings further evidence of the momentum behind the restaurant sector at the moment and behind restaurant share prices". Considering its current negative view on the sector and the trading outlook going into a recession, it however recommends "investors take a cash bid, at a reasonable premium, at this time".
Exciting stuff - feels a bit like the old days!
http://www.bloomberg.com/apps/news?pid=20601102&sid=aYO3qauhfeIo&refer=uk
http://www.ft.com/cms/s/0/861d5e94-39d7-11de-b82d-00144feabdc0.html
http://business.timesonline.co.uk/tol/business/industry_sectors/leisure/article6226031.ece
