Monsoon threat to cut dividends

MONSOON founder Peter Simon threatened to cut dividends to punish rebels who refused his family trust's offer to buy their shares. He launched a stinging attack on the City for undervaluing his company.

Monsoon is to 'review' the dividend. The Stoneycroft Trust, set up for Simon's children, said it would support any cut.

Simon, who is moving the store chain down to Aim, told yesterday's agm he was disappointed with the City.

He said: 'We have worked very hard with the investment community and made them significant gains. No-one has ever said, 'Well done'. It's a lot of nonsense.' Only six shareholders turned up at what one described as an 'aggressive' meeting.

Simon told them: 'You have the choice. If you don't like the way we run the business, you can invest in another one.'

Stoneycroft has raised its holding to 75.5%, triggering the move to Aim. Many investors saw this as a backdoor way of taking Monsoon private without a bid premium. Simon denied this. Sales rose 6% over 18 weeks.