Shore Capital downgrades Fulham Shore to 'hold' following Toridoll bid

Shore Capital said Toridoll's £93.0m offer - 14.15p on a per share basis - for Fulham was in line with its own fair value estimates and, given the current trading backdrop, also looks "very much as expected".

"Although a control premium would typically be warranted, on balance, we cut to a 'hold' noting the high preliminary proportion of intent and irrevocable undertakings totalling almost 50% of the voting rights," noted Shore Cap.

It also said it feels on this basis, Fulham Shore's directors were happy with the offered price and unlikely to go for "a bigger bite of the cherry" but did note that a third-party counteroffer was still possible.

"The acquisition values the entire issued and to be issued ordinary share capital of Fulham Shore at approximately £93.4m on a fully diluted basis which translates to 14.15p for each Fulham Shore share. As such, this represents a premium to yesterday's closing price of 10.5p of circa 35% and is consistent with our fair value of 14.5p."

Reporting by Iain Gilbert at Sharecast.com