Stonegate considering options as early votes on its takeover of Revolution fall short

Alys Key
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Salsa owner Stonegate is considering its options (Source: Stonegate/Bar Salsa Temple)

Stonegate Pub Company says it is "considering its options" after only just over half of proxy votes were in favour of its takeover bid for Revolution.

A vote on Stonegate's 203p per share offer for the bar chain is set to be completed tomorrow, but more than half the votes have already been cast in a proxy ballot, the results of which were announced this morning.

Read more: Profits fell at Revolution Bars but it's still primed for a takeover

Revolution said that 54.7 per cent of those who voted were in favour of the deal, with 45.3 per cent against.

Stonegate, the owner of bar chains including Slug and Lettuce and Salsa, will need three quarters of shareholders to back its takeover if it is to successfully close the deal.

One of Revolution's largest shareholders, Artemis Investment Management, has already publicly withdrawn support for the takeover, which is seen by some as undervaluing the company.

Shares in Revolution were down 4.2 per cent to 189p today.

Stonegate said today it was "considering its options" with regard to the takeover bid.

Nightclub operator Deltic declined to make a firm offer on Revolution last week after its proposals for a merger were twice rebuffed.

Read more: Revolution Bars has urged Deltic to make a cash offer

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