Umbro float facing red card

By ROBERT LEA
Updated: 19:00 EST, 26 May 2004

THE flotation of England football-shirt maker Umbro, one of the highest-profile listings planned for this summer, is in danger of being pulled today after a catastrophically poor reception from institutional shareholders.

Venture capitalist Doughty Hanson had aimed to make the most of Euro 2004 football fever by floating Umbro in the lead-up to next month's tournament in Portugal but, with the pricing of the float due today, interest appears to have collapsed.

The listing, being handled by City broker Cazenove, was due to get away at between 150p and 190p a share, valuing the company at up to £200m. But it is understood Cazenove has been offering the stock at 125p, and it is now reckoned the price could fall to 100p.

'Cazenove are having a nightmare trying to get it away,' sources close to Umbro said.

At a price as low as 100p, there are fears that Doughty Hanson, which was yesterday forced to pull a float of a car-parts company in Germany, could shelve its plans for Umbro.

While institutions are reckoned to have had strong reservations about the initial high levels of the Umbro offer, City sources are indicating that there could be a deeper malaise, with investors suffering indigestion because of the number of floats that have come to the London market this year.

That could spell bad news for the forthcoming £680m flotation of bikes and car-parts retailer Halfords, from which venture capital group CVC is attempting to exit.