The latest episode is the weird story of the takeover that wasn't (or, technically, 'isn't' since it's still in progress). Hornby's controlling shareholders - a concert party revolving around an activist fund manager, Phoenix Asset Management - are obliged to make an offer for Hornby because their shareholding has passed the 30 per cent trigger level. In fact - following the acquisition of a 21 per cent stake in Hornby from another activist, New Pistoia Income - Phoenix now owns 55 per cent of Hornby's 85m shares. So the outcome of the offer isn't in doubt - it will go unconditional and close on 14 July.
UK takeover rules dictate that Phoenix must offer remaining shareholders the price that it paid New Pistoia - 32.4p. True, that amount is now available for sellers in the market, although Phoenix's offer comes commission-free. The point, however, is that the offer concentrates investors' minds. Do they want to follow the lead suggested by New Pistoia - and by a far better-known name in fund management, Ruffer - which seems to be giving up Hornby as a bad job, or do they stick with Hornby's existing management team?