Row over £27m toys takeover

MODEL toymaker Hornby has said a takeover bid launched by Phoenix Asset Management significantly undervalues the company.

Phoenix has started a mandatory takeover offer for the troubled firm, valuing it at £27.4m, after picking up a majority stake.

But Hornby has advised investors to take no action over the offer, made at 32.375p per share.

The investment fund agreed on Wednesday to buy 17.6m Hornby shares from New Pistoia Income, giving it 55.2pc and sparking a mandatory offer for the rest.

Hornby announced the appointment of David Adams as interim chairman following Roger Canham’s resignation.

Now Pistoia had been pressurising the group to replace Canham.