Hambro Preparing Quarto Tender Offer

Saying that it is concerned that the Quarto board "may not have given full consideration to all strategic options" available to it, including the sale of the company, J.O. Hambro Capital Management plans to make a tender offer to acquire 24.66% of the London-based publisher's outstanding shares. Since Hambro currently controls 26.34% of Quarto's stock, the purchase of an additional 24.66% would give Hambro control of the company, at which point Hambro would look to maximize shareholder value. The tender offer is scheduled to expire November 6. Speculation that Hambro would make a move on Quarto has been circulating since early this summer (News, July 14).

Reacting to the tender notice, the Quarto board asked shareholders to take no action until the directors had a chance to consider the offer. The company said it expected to make an announcement about the offer in mid-August, when it releases its results for the first six months of the year.