Former chief’s bid for Eddie Stobart hits trouble

CONTROVERSIAL former Eddie Stobart boss Andrew Tinkler has suffered a blow to his chances of seizing control of the debt-laden trucking firm after a City advisory group backed a rival bid.

Stobart shares have been suspended since August after an accounting investigation found its profits had been overstated.

Shareholders have two rescue options, both involving former executives, after rival Wincanton pulled out last week saying it had received insufficient information to carry out due diligence.

On Friday, investors will vote on a proposal from private equity firm Dbay, which owned the firm before its 2017 listing. Shareholder adviser ISS has told investors to back the deal, despite reservations about the involvement of William Stobart – the son of founder Eddie Stobart and the group’s former executive chairman – who would take a leading role in the firm.

The deal, backed by Stobart’s board, would see Dbay offer a £55 million high-interest loan in exchange for a 51 per cent stake.

ISS has advised investors against giving the company permission to issue new shares to raise money.

This is a blow for Tinkler, whose proposal included an equity fundraising of up to £70million.