Good morning!

There's plenty of news to digest today.

I'm going to update this list with planned coverage as the day unfolds:




InterQuest (LON:ITQ)

  • Share price: 19.8p (unch.)
  • No. of shares: 52 million
  • Market cap: £10 million

Proposed cancellation of trading on AIM

The writing is on the wall for this small recruitment company. Insiders had previously tried to take it private at 42p.

The Independent Director advised shareholders to reject that offer, on the basis that it materially undervalued the company.

That was last summer. Since then, the Chairman has increased his stake by getting paid shares in deals Interquest made with another company he is involved in.

We now have another proposed cancellation, and the Chairman's holding company proposes to put a bid in in the market for 4.2 million shares at 24p, before the voting takes place. A huge discount even to the 42p price which the Independent Director believed was an undervaluation.

The announcement was released at 5.22pm on Friday evening. It said:

The Directors consider that the Cancellation is in the best interests of the Company and its Shareholders as a whole and therefore unanimously recommend that you vote in favour of the Resolutions

It would be very interesting to hear the Independent Director's rationale for this recommendation! Since the Chairman's bid at 24p is not mandatory, I suppose we can't object on the grounds that the proposal undervalues the company.

Almost 69% of votes have been pledged in favour of the resolutions. The Chairman plans to start buying shares in the market later this week, and this will bring the concert party's aggregate shareholding closer to if not above the 75% of votes needed to push it through.

Assuming that it goes ahead, if minority shareholders don't want to stay invested in a private company which will be completely dominated…

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