Bernard Matthews wins back company

Bernard Matthews' poultry offer has won him full ownership of the firm which bears his name

Farming tycoon Bernard Matthews, who shelled out £2 and 10 shillings to start his turkey business 50 years ago, has succeeded in buying it back in a £232m deal.

Shareholders in Bernard Matthews plc on Monday accepted a 185p-per-share offer from the Norfolk poultry magnate, who with his "bootiful" advertising catchphrase turned the brand into a household name in the UK.

Mr Matthews and his family retained a 41.7% stake in the business, which was floated in 1971.

The firm announced on Monday that independent shareholders had also backed the deal, which will see the company taken over by a holding company headed by Mr Matthews.

The offer values the company at 57% more than its market capitalisation the day before the buy-out plan was unveiled.

Sluggish shares

Mr Matthews launched the takeover in response to the firm's static shareprice, which he felt should have risen to reflect increasing profitability.

"Despite the success of the business, the valuation accorded it has been relatively disappointing," he told shareholders last month.

Mr Matthews blamed the sluggish share performance on "poor investment sentiment" towards small and food-related companies.

Directors of many older firms have voiced concerns over a City focus on new economy stocks and companies in the bluechip FTSE 100 index.

Weak valuations render it more difficult for firms to raise money to fund development plans.

Continental expansion

Bernard Matthews plc is set to raise advertising spending to support the launch of new products, and its expansion into countries such as Germany and Poland.

Chicago-based firm Sara Lee, a manufacturer of foods and household products, in November decided not to launch a takeover battle against Mr Matthews for ownership of the firm.

In September, Bernard Matthews reported first-half pre-tax profits of £15.9m, 43% up on the previous year.