Rangers' new share issue may let Dave King avoid £11m takeover bid
Rangers' latest fund-raising drive may eliminate the need for chairman Dave King to fulfil a judge-ordered £11 million takeover bid.
The Rangers board have accepted a proposed £12.6 million share issue might compromise a separate £11 million offer Mr King was told to make to shareholders to comply with the law over takeovers.
The Takeover Code forbids attempts to disrupt mandatory bids, like the one Mr King’s has to make. However, an exception may be made if the new fund-rasing issue if offered by the majority of shareholders, it has been claimed.
The Herald reported if there is not enough take-up of the so far mandatory bid from Mr King, it would fail meaning he could avoid contempt of court proceedings being brought by the Panel of Takeovers and Mergers.
Last week, a hearing into whether Mr King had breached the court order compelling him to make the £11 million offer to the club’s shareholders was postponed.
Mr King has previously argued that a judge went “too far” in ordering him to make a mandatory offer at a price of 20p a share.