Early start on a Fine and Warm Day for London meetings with my solicitors and then Peter Smith of Kode to make progress on the takeover problems so that the deal is still on.
Up and to my normal toast and marmalade, washed down with apple juice for breakfast. A train to London at 8.02am from St Neots station, arriving somewhat early at Ashursts at 9.30am for the 10.00am meeting. Richard James and I were immediately agreed on the approach to take for today’s meeting. No ground to be given on warranties or representations, the insistence upon tax clearances and avoidance of tax warranties, and a strong but private approach to Peter Smith about the composition of the Kode Board of Directors; offering myself as Non-Executive Director or John Lamb, Derek Weatherby and Stephen Day as candidates for strengthening the executive talent.
In particular, the performance of Ken Walker had worried us and also the meddling influence of the lawyer/chairman, Ted Randell, but in the latter case I had not really had the chance to meet him in a true light perhaps. The other side conceded all the other points in the meeting; adopting a much more conciliatory tone than of late. I think that they could see I was in a mood to call off the deal if unsatisfied. They could not move on the tax clearances, being advised that inclusion of a conditional clause in the circular, after past Kode takeover problems, would be out of the question. Peter has reacted reasonably well to my comments on management, sticking to his guns on being in control of the Board, but biding his time before moving. He agrees absolutely on the criticisms of Ken and I give him about 6 months to deal with the problem after which, as a large shareholder, I will be back. Back to the office to apologise to the girls for being called to a London meeting without warning – a shortage of keys kept them out of Grove House for a while! Then to brief John Lamb and Derek Weatherby of my findings and reassure them that the deal was still on. I then dealt with Derek’s review that was outstanding and resolved to reopen the negotiations for Peter King’s Byte Shop shares which was patently ill-considered. Home to find all 13 ducks returned to the fold and now laying 11/12 eggs a day again. The day fine and warm. Up ‘till 1.30am writing up the public statements regarding the takeover.