Kirkham bid takes DFS private

FURNITURE firm DFS is leaving the stock market after Lord Kirkham won shareholder backing by the skin of his teeth to buy company he founded 35 years ago.

At a meeting in Doncaster, Kirkham's £507m offer was approved by investors holding 80% of the shares, narrowly above the 75% he needed to succeed.

Some 239 shareholders voted against, including influential fund managers M&G, which holds 7.6%, and Morley with 6.4%.

Kirkham, 59, said he celebrated with 'half a glass of Dom Perignon' champagne but felt 'no great euphoria'.

He has been battling to take the group private for more than six months against fierce opposition from a number of major shareholders.

Kirkham, whose family already owns 10% of the group, originally offered 415p per share in March. He was forced to raise his offer three times before a price of 455p finally clinched the deal. DFS shares rose 5 3/4p to 457 3/4p.

The Yorkshireman fears he may have overpaid. He is investing £140m of his own cash in DFS and borrowing £370m from Japanese bank Nomura.

'It is going to be a challenge,' he said. 'I've got 10 years of work ahead, an awful lot of personal money invested and taken on a great deal of debt.'