Kingfisher's French bid stalled

BOARD members of French DIY chain Castorama today launched a last-ditch attempt to frustrate the takeover by British retail giant Kingfisher. In what Kingfisher condemned as 'stalling tactics', Castorama chief executive Jean-Hugues Loyez this afternoon rejected Schroder Salomon Smith Barney as independent arbitrator to mediate on the sale.

He claimed the giant investment bank had a conflict of interest because it lists among its clients Compass, the catering group where Kingfisher chairman Francis Mackay is also chairman. Loyez made his rejection despite the fact that SSSB had been his choice in the first place.

Kingfisher bought 55% of Castorama in 1998 in return for putting B&Q into the combined division. But Anglo-French relations broke down rapidly and now Kingfisher is trying to buy the remaining 45% for £3.2bn.

Loyez, along with four other French representatives on the board, is opposed and wants Kingfisher to demerge Castorama instead. He will be in London on Tuesday urging Kingfisher shareholders to accept his proposals.