Lancelot rides in with Londis bid

THE £60m battle for corner shops chain Londis flared back into life today as a rival bidder said it was prepared to offer terms that will allow shopkeepers to retain control of 60% of the company.

Two former directors of the T&S Stores chain, bought by Tesco last year, said their offer would put the same value on Londis as the deal tendered by Irish retailer Musgrave.

The new bidders are backed by the Icelandic Kaupthing Bank and the £31,000 that will be offered to each shareholder will be split between cash and shares, allowing shopkeepers a controlling stake.

Ex-T&S buying and marketing director Geoff Purdy, who is leading the bid vehicle Lancelot, said today: 'We have had no option but to go public. Our case has not been heard and we want shareholders to have the choice between the two offers.'

A spokesman for Londis said it was waiting to hear directly from Lancelot, adding that its proposals had already been turned down by the board.