I hold a few of these - has been very quiet and not a trade but a longer term play on possibility of M+A. It used to be a cheap way into Autonomy


ains :-))


ENIC plc ("ENIC" or "the Company")

Offer approach

The Company has received an approach which may or may not lead to an offer for
the entire issued share capital of the Company.

A further announcement will be made as soon as practicable.


Shares opened at 24.5p - sold at 41p + special cert = profit 67.3%

I think it will be have to be a little higher than that - clearly someone is pushing for a low price




LONDON (AFX) - ENIC PLC, the loss-making football investment company, is facing a possible management buy-out with a bid rumoured to be pitched at between 30 to 35 pence share, according to market sources.
Earlier today, the group said it had received a takeover approach which pushed its shares up 8-1/2 pence to 33-1/2 at 11.30 am, valuing it at about 33.7 mln stg.

ENIC managing director Daniel Levy holds 11 pct of the equity and together with family trusts of the Lewis family, who established the company, the major shareholders account for 51.6 pct.

Levy is also chairman of Tottenham Hotspur PLC, in which ENIC has a 29.9 pct stake. It is understood that there will be no threat to Tottenham's independence following any ENIC takeover.

ENIC posted a pretax loss of 8.2 mln stg for the year to June 2002. The group has been facing testing trading conditions over the past two years as the scale of the financial problems facing the football industry has risen.

Apart from Tottenham Hotspur, ENIC also holds stakes in FC Basel, AEK Athens, Vicenza Calcio, Slavia Prague and Glasgow Rangers.

3:28pm (UK)
Enic Shares Jump on Takeover Approach

By John Bingham, City Staff, PA News


Shares in Enic, the sports and media group run by Tottenham Hotspur chairman Daniel Levy, rocketed 38% today after the firm received a takeover approach.

The group, which owns stakes in Tottenham Hotspur and Glasgow Rangers, confirmed that it had received an approach after reports of a management buyout.

The company issued a statement to the London Stock Exchange saying that it had received a move which may or may not lead to an offer for the share capital of the company.

However it is not thought that any management buy-out of Enic would lead to a takeover of Tottenham Hotspur.

Mr Levy, who is managing director of Enic, holds an 11% stake in the company but is part of a consortium of investors which owns around 50%.

As well as a 30% stake in Tottenham Hotspur and a 20% share in Rangers, Enic also owns 99.9% of Vicenza Calcio, 97% of Slavia Prague, 43% of AEK Athens and 12% of FC Basel.

Its other interests include a two thirds stake in the Warner Bros Studio Stores chain of high street shops and a number of media interests including the ukbetting.com online bookmaker.

Shares in the group rose 9.5p to 34.5p, valuing it at 35 million.

Enic soars on bid approach
Published: 15:04 Mon 24 Feb 2003
By Laurence Fletcher, Funds Correspondent

Enic shares are up by a third on news the group that bought a controlling stake in Tottenham Hotspur football club from Sir Alan Sugar has received a bid approach.


Shares in the 25 million sports and entertainment investment group (ENI) run by Daniel Levy are 8.5p, or 34%, higher at 33.5p.

In a brief statement to the Stock Exchange, the company said it had received an approach, which may or may not lead to an offer for the entire issued share capital of the company, and added it would make a further announcement 'as soon as practicable'.

Enic owns 29.9% of Tottenham Hotspur football club, having snapped up Sir Alan Sugar's stake in December 2000. It has also bought into Glasgow Rangers, Vicenza, AEK Athens and Slavia Prague.

The group made a small fortune from its well-timed investment in computer network group Autonomy (AU.), but more recently managing director Levy has come under pressure from shareholders to break Enic up. Last year the group withdrew from an unprofitable venture in a chain of 16 Warner Brothers merchandising stores.

The shares have fallen from more than 370p in early 2000 to below 25p earlier this month on concerns over the group's strategic direction.

Levy is chairman of Tottenham (TTNM) and also of investment group Paradigm Media Investments (PAR), which Citywire highlighted in September as sitting on a cash pile worth more than the company's market cap.


2003 Citywire

closed at a high on the bid - 33/35p plus 36% :-))



Enic shares jump on Spurs takeover approach - Irish News

Shares in Enic, the sports and media group run by Tottenham Hotspur chairman Daniel Levy, rocketed 38% today after the firm received a takeover approach.

The group, which owns stakes in Tottenham Hotspur and Glasgow Rangers, confirmed that it had received an approach after reports of a management buyout.

The company issued a statement to the London Stock Exchange saying that it had received a move which may or may not lead to an offer for the share capital of the company.

However it is not thought that any management buy-out of Enic would lead to a takeover of Tottenham Hotspur.

Mr Levy, who is managing director of Enic, holds an 11% stake in the company but is part of a consortium of investors which owns around 50%.

As well as a 30% stake in Tottenham Hotspur and a 20% share in Rangers, Enic also owns 99.9% of Vicenza Calcio, 97% of Slavia Prague, 43% of AEK Athens and 12% of FC Basel.

Its other interests include a two thirds stake in the Warner Bros Studio Stores chain of high street shops and a number of media interests including the ukbetting.com online bookmaker

February 25, 2003

Bid approach lifts Enic price
By Ashling OConnor Times



SHARES in Enic, the media and entertainment group that controls Tottenham Hotspur football club, rose by more than a third yesterday after the company said that it had received a bid approach.
The approach is believed to amount to a management buyout by the AIM-listed groups two biggest shareholders, Joe Lewis and Daniel Levy, according to sources close to the company.

Mr Levy, who is chairman of Spurs, has been considering taking Enic private after a series of asset writedowns pushed the group into the red.

Mr Lewis, a Bahamas-based property billionaire, and Mr Levy together own 51.7 per cent of Enic, a holding company for an investment portfolio including six European football clubs.

A move to take Enic private would not affect the status of Spurs, which is separately quoted. Enic owns 29.8 per cent of the club, the first to go public, in 1983, but assumed operational control when it bought the stake from Sir Alan Sugar, who is still a major shareholder.

Enic has stakes in Glasgow Rangers (20.2 per cent), FC Basel (11.8 per cent) and AEK Athens (42.8 per cent), and owns almost 100 per cent of Vicenza Calcio, the Serie B Italian club, and Slavia Prague of the Czech Republic.

Football remains Enics primary focus after it gradually turned its back on the gaming and entertainment sectors. The company retains a stake in Autonomy, the software group. The company reported a pre-tax loss of 8.2 million in the year to June 30, 2002, on turnover of 26.7 million.

Mr Levy, Enics managing director, is noted for maintaining a healthy balance sheet at Spurs while many of its rivals are burdened by heavy debt.

Enic shares rose 9p to 34p.

LONDON (AFX) - Tottenham Hotspur PLC, the Premiership football club whose controlling shareholder ENIC PLC admitted to a takeover approach on Monday, has slumped to a half year pretax loss.
The club known as Spurs said a material accounting write-down of 5.1 mln stg on the valuation of Ukrainian international striker Sergei Rebrov's registration was the main reason it reported a pretax loss of 8.6 mln stg for the six months to Dec 31 2002 against profit of 2.9 mln last time.

"Whilst this is a significant accounting adjustment, the decision to dispose of this player on a long-term loan agreement reinforces the company's commitment to reducing player wages in the future," said chairman Daniel Levy, who is also the managing director of ENIC and is rumoured to be considering a management buyout of the loss-making investment company.

Rebrov joined Spurs from Dinamo Kiev for a club record 11 mln stg in 2000 but never fulfilled his potential. He joined Fenerbahce in an 18 month loan deal in January and the Turkish side have an option to sign him permanently in 2004.

Turnover in the six months increased to 32.8 mln stg from 29.4 mln.

However, income from player transfers was just 0.1 mln stg, reflecting the Rebrov write-down and an illiquid transfer market, versus 5.8 mln last time, while the cost of amortising player contracts, jumped to 11.2 mln stg from 5.5 mln.

Operating profit before profit on the sale of player registrations and amortisation was 2.7 mln stg down from 2.9 mln.

The operating profit figure for 2002 excludes one-off administration costs totalling 1.7 mln stg -- 1.2 mln stg of costs related to the proposed Academy and training facility at Abridge and 0.5 mln stg of professional costs incurred for the future development of the White Hart Lane stadium.

Excluding these costs the underlying operating profit "indicates that the business is performing successfully in these more challenging times," said Levy.

Pretax profit before player amortisation was 2.6 mln stg versus 8.3 mln.

Loss per share totalled 8.5 pence versus earnings per share of 1.9 pence.

"We currently face some very significant challenges, but your board is confident that the changes that have taken place in the business to date mean that we are well positioned to benefit from the future success of the team," said Levy.

"We now have a strong management in place across the business but know that we must continue to develop additional income and carefully manage the fixed cost base."

At 8.56 am shares in Tottenham Hotspur, which lies in eighth place in the 20-team Premier League, were unchanged at 17 pence, capitalising the club at 17.3 mln stg.

james.davey@afxnews.com

February 27, 2003

Spurs puts blame on signing for 8m loss
By Ashling OConnor TIMES



TOTTENHAM HOTSPUR yesterday fell into loss for the first time in two years as the collapse of the transfer market and a weak media sector in Europe hit the north London football club.

The company blamed the loss on a one-off impairment charge of 5.1 million, relating to the value of Sergei Rebrov. The 28-year-old Ukrainian joined Spurs for a club record of 11 million in June 2000 but failed to make an impact, scoring just four goals in more than 20 games.

Rebrov has since left the club on a long-term loan to Turkeys Fenerbah as part of a drive to reduce the wage bill, which accounts for about 52 per cent of turnover.

We have learnt lessons from the expensive acquisition of Rebrov. We continue to monitor our players contractual situations, the club, which has a squad of about 50 players, said.

Spurs reported first-half losses of 8.6 million, against a pre-tax profit of 2.9 million over the same period last year, despite an 11 per cent rise in turnover to 32.8 million.

The club, currently lying in equal seventh place with Liverpool in the Premier League, said it had increased its income from gate receipts, season tickets, executive boxes and programme sales by 1.3 million to 12 million.

Media income rose 12 per cent to 10.2 million because of a greater number of pay-per-view appearances and the increase in the amount paid by the Premier League to clubs for the sale of their overseas TV rights.

In the half year, Spurs was broadcast five times on BSkyB, in which The News Corporation, parent company of The Times, has a 35.4 per cent stake. The rate was about 600,000 a game.

However, it is far from certain that Premier League clubs will continue to earn as much from broadcasters as in the past. TV deals worth a total of 1.5 billion are being renegotiated. The European Commission has also indicated that it wants to end BSkyBs monopoly of live matches. This issue is creating uncertainty as to this most important revenue stream and we must remain cautious, Spurs said.

The club said options for the development of White Hart Lane, its home ground, remained open, including a possible relocation. A 65 million facility is in place for the development of the stadium and academy. Net debt fell from 19.8 million to 16.8 million.

Spurs, the first football club to float in 1983, is controlled by Enic, the investment group run by property billionaire Joe Lewis. Enic this week revealed it had received a bid approach widely interpreted as a management buyout. A move to take Enic private would not affect Spurss status as a public company.

There was a loss per share of 8.5p, compared with earnings per share of 1.9p year-on-year. No interim dividend was recommended. The shares were unchanged at 17p.

up another 4.4% on a buy of 50K

Ticking up again on a couple of useful buys .... 35/37 up 3%


ains

Looks promising for maybe 40p plus .......

ains





March 09, 2003

Levy scores 35m buyout at Spurs
Dominic OConnell



DANIEL LEVY, chairman of Enic, the football-investment company, is to take the group private in a deal worth more than 36m.
Tottenham Hotspur, the north London football club that is Enics key investment, will retain its own stock-market listing under the deal, which could be announced as soon as tomorrow.

Levy, his family, and Charlie Lewis, the son of the billionaire currency trader Joe Lewis, already control half of Enic, which owns stakes in five other football clubs, including 25% of Glasgow Rangers and 47% of AEK Athens. It has a 29.9% stake in Spurs.

Levy and his advisers are understood to be working on the deal this weekend.

The deal will cap a tumultuous period for Enic as a quoted company. It has been a disappointment to shareholders, and last month reported a pre-tax interim loss of 8.6m, mainly because of losses on player trading at Spurs.

The companys shares hit a peak of 383p in 2000 but have since slumped with the rest of the football sector, and were languishing at a five-year low of 24p last month, when the company revealed it had received a takeover approach.

The shares jumped on the news, and closed on Friday at 36p, valuing Enic at 36m. It is understood that the Levy buyout could be made at a slight premium to the current price.

Levy brought in David Buchler, the insolvency expert, to arrest the decline in Spurs financial fortunes.

:-)) ...... there we go ..... a good result at 40p ..... love it when a plan comes together

ains



Kondar Limited
10 March 2003


KONDAR LIMITED AND ENIC PLC, 10 March 2003

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO
THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN


Recommended cash offer to acquire ENIC plc ('ENIC') for 40.3 million
to be made by Shore Capital and Corporate Limited
on behalf of Kondar Limited ('Kondar')



The board of Kondar and the Independent Directors of ENIC announce that they
have today agreed the terms of a recommended cash offer, to be made by Shore
Capital and Corporate Limited, on behalf of Kondar, to acquire the entire issued
share capital of ENIC.

The offer will be 40 pence in cash for each ENIC Share ('Offer') and will value
the entire issued share capital of ENIC at 40.3 million.

While Kondar has no plans for ENIC to dispose of its interest in Tottenham
Hotspur plc, ENIC Shareholders who validly accept the Offer will be issued with
a certificate pursuant to a deed poll entitling them in certain circumstances to
participate in any sale of this interest to a third party following the Offer
becoming or being declared unconditional in all respects. Further details of
these arrangements are set out in the following announcement.

The Offer will represent a premium of 60 per cent. to the closing middle market
price of 25 pence per ENIC Share on 21 February 2003, the last dealing day prior
to the announcement that the Company was in discussions with respect to a
possible offer. The Offer will also represent a premium of 30.7 per cent. to
the average closing middle-market quotation of 30.6 pence per ENIC Share over
the six months prior to commencement of the Offer Period.

Kondar, a private limited company registered in England and Wales, was
incorporated on 9 October 2002 for the purpose of making the Offer. The sole
director of Kondar is Daniel Levy who has not been involved in the consideration
of the Offer by the Independent Directors nor in their decision to recommend the
Offer.

Kondar has received irrevocable undertakings to accept the Offer from the
Concert Party (comprising the family interests of Charles Lewis and Daniel Levy
who are treated by the Panel as acting in concert under the City Code and who
already own, in aggregate, 51.66 per cent. of the issued share capital of ENIC)
and the Independent Directors in respect of, in aggregate, 52,312,658 ENIC
Shares representing 51.94 per cent., of ENIC's issued share capital.

The Independent Directors, who have been so advised by WestLB Panmure, consider
the terms of the Offer to be fair and reasonable so far as ENIC Shareholders are
concerned and unanimously recommend ENIC Shareholders to accept the Offer. In
providing advice to the Independent Directors, WestLB Panmure has placed
reliance upon the Independent Directors' commercial assessments.

Daniel Levy, the managing director of Kondar, said, 'This Offer presents ENIC
Shareholders with a good opportunity to realise their investment for cash, with
certainty, at a very substantial premium to the share price prior to the
announcement that discussions were taking place.'

Stephen Davidson, the Chairman of ENIC, said, 'The Independent Directors believe
that the Offer gives ENIC Shareholders an opportunity to realise their
investment in ENIC at a fair and reasonable price and at a time when prospective
investment in the football sector carries a high degree of risk.'

ENIC has also today announced its interim results for the six months ended 31
December 2002.

This summary should be read in conjunction with the full text of the following
announcement and its appendices.

LONDON (AFX) - ENIC PLC has recommended a cash offer valuing the company at
40 pence per share from Kondar Ltd, a company who's sole director is Tottenham
Hotspur PLC chairman Daniel Levy.
The offer values the whole of ENIC at 40.3 mln stg.
While Kondar has no plans for ENIC to dispose of its interest in Tottenham
Hotspur, ENIC shareholders who validly accept the offer will be issued with a
certificate entitling them in certain circumstances to participate in any sale
of this interest to a third party following the offer becoming or being declared
wholly unconditional.
ENIC said the offer will represent a premium of 60 pct to the closing middle
market price of 25 pence per ENIC share on Feb 21 2003.
ENIC also released interim results today and these showed the impact of the
difficult environment in European football as it incurred a pretax loss of 9.4
mln stg, down from a profit of 1 mln in 2001. Turnover slumped to 4.8 mln stg
from 15.2 mln.
The largest proportion of ENIC's assets are connected with the football
sector and the board said it does not see any likelihood of an improvement in
European football in the foreseeable future. "European football, generally, is
suffering from lower than expected sponsorship, merchandising and broadcasting
revenues and together with the Bosman ruling (which enables players to leave
clubs free of charge upon expiry of their contracts) this has resulted in a
sharp decline in the prices achievable in the player transfer market."
At the group's other businesses, it said trading conditions continue to be
difficult at Warner Bros Studio Stores and the WB Stage 16 Restaurant in Las
Vegas has now closed and all arrangements with Warner Bros Consumer Products
terminated.
ENIC chairman Stephen Davidson and the ENIC independent directors said that,
in assessing Kondar's offer, they were mindful that the prospects for the
football sector and stock market in general are uncertain.
Davidson said, "The Independent Directors believe that the offer gives ENIC
shareholders an opportunity to realise their investment in ENIC at a fair and
reasonable price and at a time when prospective investment in the football
sector carries a high degree of risk."
Kondar has received irrevocable undertakings to accept the offer from the
Concert Party comprising the family interests of Charles Lewis and Daniel Levy
who are treated by the Panel as acting in concert under the City Code and who
already own, in aggregate, 51.66 pct of the issued share capital of ENIC, and
the Independent Directors in respect of, in aggregate, 52,312,658 ENIC shares
representing 51.94 pct, of ENIC's issued share capital.

newsdesk@afxnews.com

Embargoed for release 10 march 2003

Enquiries :

Matthew Collecott, Finance Director, ENIC Tel 020 7929 5599
John Bick, Holborn Tel 020 7929 5599

ENIC plc ('ENIC' or the 'Company')

Unaudited interim results for the six months ended 31 December 2002


ENIC plc today announces unaudited interim results for the six months ended 31
December 2002.


Chairman's Statement

We have continued with our policy of rationalising the Group's portfolio of
investments. For the six months ended 31 December 2002, Group turnover was #4.8
million (2001: #15.2 million), and pre-tax losses were #9.4 million (2001:
profit of #1 million).


The largest proportion of the Group's assets are connected with the football
sector and in my report to you for the year ended 30 June 2002, I said that the
backdrop to European football had become increasingly difficult. The position
did not improve in the six months under review, nor is it likely to do so in the
foreseeable future. European football, generally, is suffering from lower than
expected sponsorship, merchandising and broadcasting revenues and together with
the Bosman ruling (which enables players to leave clubs free of charge upon
expiry of their contracts) this has resulted in a sharp decline in the prices
achievable in the player transfer market. In addition, the uncertainty
surrounding future media revenues has been illustrated by the collapse of ITV
Digital and the conditions under which other broadcasting contracts will be
renewed have deteriorated.


This difficult environment has had an adverse impact on the finances of all the
clubs in which we are involved. Although a number of them are performing well on
the field (FC Basel is currently second in the Swiss League and has reached the
second group stage of the Champions League; Glasgow Rangers is top of the
Scottish Premier League and reached the first round of the UEFA Cup, Slavia
Prague is top of the Czech domestic league and reached the fourth round of the
UEFA Cup, Vicenza Calcio is currently fifth in Serie B in Italy and AEK Athens
reached the first group stage of the Champions' league and is currently third in
its domestic league) this good performance has not been translated into
satisfactory financial results. Tottenham Hotspur plc (currently ninth in the
Premier League), recently announced its interim results which showed a pre-tax
loss of #8.6 million (31 December 2001: profit of #2.9 million).


In terms of our other businesses, trading conditions continue to be difficult at
Warner Bros. Studio Stores and the WB Stage 16 Restaurant in Las Vegas has now
closed and all arrangements with Warner Bros. Consumer Products terminated.
Since the period end, the Group participated in the share buyback of Paradigm
Media Investments Plc raising #2.8 million and as a result of the reduction in
the issued share capital, the Group now owns approximately 29.9 per cent. of
that company.


Outlook

It was also announced today that a cash offer is being made by Kondar Limited
(of which Daniel Levy is the sole director and in which his family has an
interest) for the entire issued share capital of ENIC. The Offer, which has been
recommended by the Independent Directors of ENIC including myself, Giles
Hargreave and Barbara Thomas, values each ENIC share at 40 pence. In assessing
the Offer, the Independent Directors were mindful that the prospects for the
football sector and stock market in general are uncertain. Further details on
the background to the recommendation are contained in today's separate
announcement by Kondar and the Independent Directors of ENIC.

Currently the market shows 38.5/40p and with 40p cash on offer plus the deal on Spurs - I think it's worth waiting for the paperwork and money if you hold any sort of number - its commision free as well. Using an OD @ 8% is a cheap way of funding if necess.

ains



'While Kondar has no plans for ENIC to dispose of its interest in Tottenham
Hotspur plc, ENIC Shareholders who validly accept the Offer will be issued with
a certificate pursuant to a deed poll entitling them in certain circumstances to
participate in any sale of this interest to a third party following the Offer
becoming or being declared unconditional in all respects. Further details of
these arrangements are set out in the following announcement'

I see there is some buying @ 39.75p





LONDON (SHARECAST) - Shares in Enic rose in early trading as the sports and entertainment group announced that it has agreed a cash offer with managing director Daniel Levys private company Kondar, at 40p a share valuing the business at 40.3m.

The independent directors of Enic, which owns a 28% stake in football club Tottenham Hotspur, said that the uncertainty surrounding the prospects for the football sector and stock market aided their decision.

Kondar, whose sole director is Daniel Levy, said it has no plans for Enic to dispose of its interest in the club, but said that current shareholders will be entitled to sell this interest in certain circumstances.

The news will fuel speculation, already rife, that Levy is planning to buy out the rest of the Tottenham.

Enics interim results, announced at the same time, revealed a pre-tax loss of 9.4m for the six months to December 2002, against a profit of 1m a year earlier. Turnover fell from 15.2m to 4.8m.

Big broker trade going through 2.5 million @ 39.5p


ains

Kondar offers 40m for ENIC _ KAM PATEL Money AM
It's in cash, there is a hefty premium, and ENIC goes private if offer accepted


Kondar, a private concern, has made an recommended cash offer of 40p a share for sports management group ENIC, valuing the target at 40.3m. Kondars sole director in Daniel Levy, who also managing director of ENIC and chairman of Tottenham Hotspur, the football club in which ENIC has a 29.8% stake.

The 40p a share offer represents a 60% premium to the closing price of 25p for ENIC on 21 February 2003, the last dealing day before an announcement that ENIC was in discussions which could lead to an offer.

The offer also represents a premium of 30.7% to the average closing price of 30.6p for ENIC over the six months. ENIC shares are up 9% to 39.25p.

Kondar has already received irrevocable undertakings to accept its offer parties owning in total 51.66% of ENIC. The irrevocables include the Levy familys interests in ENIC.

Kondar said it has no plans for ENIC to dispose of its interest in Tottenham
Hotspur, although it will be disposing of other non-core assets. Following acceptance of the offer, it intends to take ENIC private.

Stephen Davidson, chairman of ENIC, said, 'The independent directors believe that the Offer gives ENIC Shareholders an opportunity to realise their investment in ENIC at a fair and reasonable price and at a time when prospective investment in the football sector carries a high degree of risk.'

Enic also announced its interim results for the six months ending December 2002. They show a loss before tax of 8.6 million on turnover of 32.8 million. Net assets at the end of the period totalled 29m.

Explaining the background to its acceptance of the offer, ENIC said many of Europe's football clubs are suffering from lower than expected media and broadcasting revenues. This together with the Bosman ruling, which enables players to leave clubs free of charge upon expiry of their contracts, has resulted in a sharp decline in the prices achievable in the player transfer market, traditionally a source of windfalls and funding for many football clubs.

ENIC said it has noted the recent funding requirements of many of the clubs in which ENIC has investments (in particular those of Glasgow Rangers, AEK Athens, Slavia Prague and Vicenza) and believes that in the near future it may become necessary for it to invest further cash in order to fund and protect the future value of its football investments.

The share price of Tottenham Hotspur meanwhile has declined significantly since ENIC acquired its stake in December 2000.

Against this uncertain background of the football sector, ENIC believes it would be inappropriate to use its cash resources to invest further in the football sector without offering ENIC shareholders the opportunity of a cash exit at a fair price. It also said that institutional investors are increasingly reluctant to invest in companies with small market capitalisations and that this shift will continue to have a material impact on ENIC's share price.

The group added that because of these factors the prospects for material growth in the ENIC share price are limited and it has concluded that ENIC shareholders are unlikely to benefit from the company remaining a publicly quoted company.

A few heavy trades going through - total volume now nearly 7 million ...... clearly a done deal

citwire

Levy launches 40m Enic bid
Published: 11:21 Mon 10 March 2003
By Laurence Fletcher, Funds Correspondent


Tottenham Hotspur chairman Daniel Levy has launched a 40 million buyout bid for sports and media investment company Enic, but says he has no current plans to sell the group's stake in the mid-table Premiership club.


Levy, who is also managing director of Enic (ENI), has offered shareholders 40p a share via his buyout vehicle Kondar for the 36 million company, as determined by Friday's closing price.

The offer has been recommended by Enic's directors and owners of 52% of the company have agreed to sell their stakes. These include executive director Charles Lewis, son of Kondar backer Joe Lewis.

Enic announced two weeks ago it had received a bid approach, prompting speculation Levy was poised to take the company private.

This has followed pressure from shareholders to break Enic up, although Levy said today he had no plans to sell the company's 29.9% stake in Spurs.

Nevertheless, shareholders who accept Levy's bid will be entitled to profit from any sale of the Tottenham stake if it is sold for more than 18p per share.

Enic snapped up Sir Alan Sugar's stake in Tottenham in December 2000, and has also bought into Glasgow Rangers, FC Basel, Vicenza, AEK Athens and Slavia Prague.

Its gaming and media interests include a profitable stake in computer network group Autonomy (AU.), and holdings in Paradigm Media Investments (PAR) and UKbetting (UKB).

However, more recently the business plan has come under pressure. Last year the group withdrew from an unprofitable venture in a chain of 16 Warner Brothers merchandising stores.

The shares have fallen from more than 370p in early 2000 to below 25p last month on concerns over the group's strategic direction. The shares rose 3.25p to 39.25p today while shares in Tottenham (TTNM)gained 1.5p to 18.5p on hopes of further action there.

Today's offer coincided with Enic's interim results which revealed a 9.4 million loss in the six months to December compared with a 1 million profit a year earlier.

Citywire Verdict:

In today's statement, both Levy and the directors have highlighted the 'certainty' of the cash offer, compared with the 'high degree of risk' afforded by investments in the football sector.

However, Citywire has recently highlighted stakebuilding in the sector by a number of noteworthy investors, including secret buying into Manchester United (MNU) by Dutch TV billionaire Jon de Mol and buying by JP McManus and John Magnier.

Investec smaller companies expert Dan Hanbury, AA-rated by Citywire and manager of the 20 million Investec UK Smaller Companies Acc, told Citywire last month he had bought into Manchester United because of the club's success on the field and its likelihood of achieving a Champions' League place.

He also believed falling player costs and improving margins had changed the dynamics of the industry, making stocks such as Aston Villa (ASV), Southampton (SOO), Sunderland (SUA) and Newcastle United (NCU) good value.

Levy's bid appears to be a well timed offer at the bottom of the cycle, which could yet provide him with a good return. He would do well not to sell the Tottenham stake for some time.

2003 Citywire

Closed up nearly 10% on the day with 6.9 million shares traded and close to the bid price