FIH regards Dolphin approach as 'unwelcome'

Having considered a rival approach to acquire FIH Group by Dolphin Fund, the Directors consider such a deal as "unwelcome" and "seriously threatens to undermine the FIC business and the interests of its employees".

The Independent Directors of FIH (being John Foster and Jeremy Brade, who are independent to the initial bid from Staunton Holdings) note the recent unsolicited approach by Dolphin Fund and its beneficial owner Mr Eduardo Elsztain, an Argentinian citizen, and have considered Dolphin's request for access to information on FIH.

They have released the following statement:

"Having taken appropriate soundings and duly reflected on the approach, and noted reports that the approach is causing consternation in the Falkland Islands, the Independent Directors believe that the prospect of Argentinian-related control of the Falkland Islands Company ("FIC"), a subsidiary of FIH which has operations based solely in the Falkland Islands, seriously threatens to undermine the FIC business and the interests of its employees.

"The Independent Directors also note that the Falkland Islands Government ("FIG") has the power to grant or withhold licences to own assets and land in the Islands, including the licences that FIC currently holds. FIG has stated that it is closely monitoring the situation and will scrutinise any proposed change of ownership for compliance with Falkland Islands Law.

"Accordingly, the Independent Directors regard the Dolphin approach as unwelcome and posing a real hazard to FIH. They are not required to provide Dolphin with information on FIH and are not prepared to enter into discussions with Dolphin. They oppose the approach as unwelcome, as in their view it is entirely incapable of serving the best interests of FIC, FIH and its shareholders."

At 1:32pm: (LON:FIH) FIH Group Plc share price was -11.5p at 311p