Investors angry at Debs takeover

SMALL shareholders delivered outraged protests as High Street stalwart Debenhams succumbed to a £1.72bn takeover from private equity firm Baroness Retail.

Many accused the management, particularly chief executive Belinda Earl, of greed in accepting Baroness' 470p-a-share offer. One investor said: 'Don't think I'm calling Belinda a fat cat - but that's only because I'm a gentleman.'

Others worried that directors have undervalued Debenhams. In the summer, the board recommended a lower competing offer.

Mrs Thomas, a small shareholder, said: 'Belinda Earl... wanted to sell at 425p. I object to her not sticking up for shareholders but sticking up for herself.'

Chairman Peter Jarvis pointed out the Baroness offer is 77% above the price in April when takeover speculation began. He said: 'I don't think that's greed on the part of the directors.'

The £1.7bn price equals more than 12 months' sales. Arcadia was sold at just six months' sales a year ago.

Earl will cash in shares and options of nearly £4m after the deal is completed next month. She earned nearly £865,000 for the year to August and is likely to collect her £625,000 salary for 2004.

A show-of-hands vote approved the offer by 52 to 48. But proxy voters gave Baroness more than 99% of the shares, above the 75% needed to seal the deal.

John Lovering, who is backing the Baroness bid, will quit the chair of retailer Peacock Group.