Loyez presents his own reckoning

Jean-Hugues Loyez, executive chairman of Castorama Dubois Investissements, has called Kingfisher’s takeover offer a hostile bid. In an interview with the magazine “Les Echos” he makes a comparison between the economic competitiveness of Castorama and B&Q. According to his text, the costs for his group’s central office are four times lower than Kingfisher’s. Only one in five products is cheaper in B&Q’s buying department than in Castorama’s. Return on capital employed (ROCE) in France is seven points above the UK figure. As announced by Kingfisher, the Paris commercial court has decided that the bank Schroder Salmon Smith Barney should draw up a fairness opinion (certificat d’équité) on the price of € 67 per share proposed by Kingfisher. Loyez considers this offer too low.