Kingfisher takeover of Mr Bricolage teeters on shareholder uncertainty

LONDON (ShareCast) - Retail group Kingfisher (LSE: KGF.L - news) 's long-running takeover talks with Mr Bricolage have stumbled on a major hurdle as the French company's board and major shareholders have admitted getting cold feet on the deal. Shares (Berlin: DI6.BE - news) of Mr Bricolage have been suspended on the French stock exchange at the company's request.

Kingfisher, which owns the B&Q chain in the UK as well as the Castorama and Brico Dépôt chains in France, launched its takeover bid in April last year and recently has been working with the Mr Briocolage board and its major shareholders to resolve one last condition of the deal.

Mr Bricolage's ANPF franchisee network owns 41.9% of the shares with the founding Tabur family holding 26.2%.

Kingfisher said on Tuesday that it had "been made aware" that the majority of the Bricolage board and ANPF both "have reservations in relation to the transaction but has yet to receive clarification of their positions".

The Tabur family have however confirmed that they remain committed to the deal.

Kingfisher admitted that the implications for the transaction were currently uncertain and that it would update investors in due course.