Imperial spin-out says bid will leave college short-changed

The chairman of Imperial College’s commercialisation arm today warned its rival’s hostile takeover offer will short-change the top London university.

Touchstone Innovations, the AIM-listed company previously known as Imperial Innovations which was born out of Imperial’s labs, is fending off a nil-premium £466 million bid from IP Group.

Chairman David Newlands said the all-share offer was “not a fair deal” for shareholders. IP Group’s offer values Imperial College’s 15% stake in Touchstone at £70 million, but without a premium, Imperial is missing out on millions of pounds which could be spent on crucial research and development.

Newlands said the bid was having a “detrimental” effect on the business.

“Morale is being undermined, recruitment plans are on hold and our employees added uncertain about their future,” he said.

Shareholders of both groups, Neil Woodford’s Woodford Investment Management, Invesco, and Lansdowne, are pushing for a deal. Imperial, the third-largest Touchstone investor, has yet to show its hand.