The cash-only bid is pitched at 72p per share with a loan note alternative. The offer shows a 23% premium over the 15 May closing price of 58.5p, valuing the company at £37 million. Members of the MBO team control over 79% of Barlows share capital and the independent directors have recommended Barlows' shareholders to accept the offer.

Barlows specialises in development an investment in North West England. In the 12 months to 31 December 2000 it reported a pre-tax profit of £2.188 million ($3.1 million) on turnover of £6.5 million ($9.1 million). Net assets were £41.4 million ($58 million), equivalent to 80.6p per share. The fact that the stock market valued the company at a 28% discount to this net asset value is one of the main reasons why de-listing has become such an attractive option for Barlows and other companies in the stock exchange's real estate sector.

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