Hambro launches odd Quarto attack

QUARTO, the London publisher of such books as the The Bedside Kama Sutra, today found itself under assault from its largest shareholder JO Hambro, the fund manager which recently helped a £15m takeover of Group Chez Gérard.

In a highly unusual move, Hambro is making a tender offer to raise its stake in Quarto from 26.3% to 51% - but is not making a full-scale takeover bid. It accused the Quarto board of not giving 'full consideration to all strategic options currently available, including the possibility of third-party offers to acquire Quarto'.

Earlier this month the publisher said it had received a possible bid approach.

Hambro is offering to buy 4.6m shares at 132 1/2p - a mere 4% premium over last night's closing price of 127 1/2p. It said that if it gained more than 50% of the equity it had several options, including a full bid or managing its investment to 'maximise value for all remaining shareholders'.

The tender will run for an unusually long period of 14 weeks. Hambro said it had informed the Takeover Panel of its move but there was no immediate confirmation that Panel rules had been waived. Normally, anyone offering to buy more than 30% of a company is required to bid for all of it.

Quarto shares rose 7 1/2p to 135p. They touched a low of 83p in February.