Rock accuses Countryside of blocking its bid

Rock Pacific, which has a 28.1% stake in Countryside, said it was unable to make a considered offer because the housebuilder had failed to provide data required for the due diligence procedure.

A bid by Rock would have competed with that of Copthorn, a management buyout vehicle created by the Cherry family, which is headed by Countryside chairman Alan Cherry.

Copthorn, which has made an offer of 275p a share, is the only bidder, but Rock believes that the offer is too low and may block it.

The Countryside board requires the backing of about 75% of shareholders to accept the offer.

By 23 December only 23% of shareholders had accepted the Copthorn bid.

One City analyst said that each side was in danger of eliminating the other from the bidding process. He said: “It’s like the final scene of Reservoir Dogs where all the characters point guns at each other.”

Under the City’s takeover code, if the Copthorn bid is not accepted by Tuesday it will lapse. Copthorn may then not be allowed to make another offer for 12 months. And Rock may not be allowed to make a bid until six months have elapsed.

The analyst said that if the Copthorn offer were to be blocked the price of Countryside shares could fall sharply. He predicted that they could fall from 251p to about 200p. The analyst said that this situation could be avoided if “both sides saw sense and hammered out a deal”. He said Copthorn also had the option of raising its 275p offer before Tuesday to a level that would satisfy Rock and the other shareholders.

Countryside rejected Rock’s accusation that it had failed to provide financial information.

The company released a statement that said: “Rock Pacific was provided with significant supplemental material (in excess of its entitlement under the City code) and it was provided with access to Countryside management.”

Directors added that Rock had been provided with the same information as Copthorn.

A statement by Rock said: “Rock Pacific has been unable to complete its due diligence and has no choice but to announce that it is not yet in a position to announce a firm intention to make an offer for Countryside.”

Rock requested the due diligence information last month.

The company added that Countryside should be sold to the highest bidder. It said: “The manner in which the company’s information has been made available to third parties has frustrated bona fide potential offers from being able to put together for the company in a sensible timeframe.”