LONDON (Brand Republic) - Martha Lane Fox, the co-founder of Lastminute.com, is offering to buy back Lastminute shares from friends and family at the original March flotation value.
Fox is stepping in to rescue a select group of shareholders, by offering to buy back the shares at 380p each. They are currently worth 75.5p.
It is common practice for friends and family of a company鈥檚 directors to be offered shares under favourable terms when the company floats. However, retail investors were angry at the time because friends and family were allowed to buy thousands of pounds worth of shares, while retail investors were limited to 35 shares each.
It is understood that Fox has now contacted a number of people who bought shares in the friends and family flotation, but the exact number is not clear. It is believed that at least one has accepted her offer and sold their shares, while others have declined her offer.
According to a story in The Independent, Fox could be going against the guidelines of the Financial Services Authority by offering to buy the shares. The guidelines say that any director鈥檚 share dealings should be disclosed.
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