Yates buyout back on the cards

The takeover of high street pub group Yates is back on after GI Partners, the company funding the management buyout, upped its bid to ward off an eleventh-hour rebellion by family shareholders.

Venture capitalist GI Partners raised its offer for the company by 5% to 147p-a-share after descendants of Yates's founder said the bid was too low and hired investment bank Investec to advise them on what to do next.

GI Partners, through buyout vehicle Thorium, is offering £98m for the company, an increase of £5m.

The new offer boosted support from Yates shareholders to 53.9%, up from 33.4% before the increased offer, but GI Partners still needs backing from 90% of shareholders to proceed with its takeover. And, as the Yates family owns 20.4% of the company, it could still block GI Partners' plans to take the business private.