3i pulls plug on Electra

By THIS IS MONEY
Updated:

 

Venture capital giant 3i today withdrew its £1.3 billion bid for Electra Investment Trust, in the wake of yesterday's 76% vote in favour of the management's rival cashback proposals.

Despite concerns, 3i has decided against taking action over the unusual 11th-hour purchase of shares in Electra by Swiss Re, which seems to have swung the vote in favour of management.

Swiss Re acquired a 1.55% stake in Electra on Wednesday, the day before the vote on management proposals, at 25p above that day's closing price.

A statement from Swiss Re yesterday confirmed it wished "to accept EIT's proposals and is interested in further commercial relationships with the EIT group".

A 3i spokesman, said: "We are not going to ask the Stock Exchange or anyone else to make an inquiry."

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