Lowe to reject SISU offer

Friday, November 23, 2007

Rupert Lowe will not support the proposed takeover of the club by hedge fund SISU Capital.

The proposed deal, revealed in October, would see SISU take a majority stake in the Championship club's parent company, Southampton Leisure Holdings plc.

Lowe said he had made suggestions to SISU about the structure of the deal. But he told BBC Radio Solent: "They are adamant that they will not change their outline, so for now they will not receive our support."

SISU's proposed offer would be executed by means of a placing of new shares at 40p per share - 20% below its current share price - but it needs the backing of 75% of shareholders.

He has met with Michael Wilde and Leon Crouch, who are also former chairmen of the football club and major shareholders in Southampton Leisure Holdings, to discuss their position.

The trio are yet to meet representatives of London-based SISU, but Lowe said there was "no point in meeting" at this stage.

The proposal is unlikely to attract the necessary 75% backing if Lowe, Wilde and Crouch do not support it.