ADVISERS to former Eddie Stobart boss Andrew Tinkler are planning to submit an appeal to the City mergers watchdog today ahead of a vote on a controversial takeover bid for the distribution company.

The appeal to the Takeover Panel is an attempt to prevent Dbay Advisors, which has made an offer for the company, from voting on 6 December, Sky News reported.

Tinkler is said to have acquired a 6.5 per cent stake in Eddie Stobart Logistics through his company TVFB.

Tinkler said yesterday he is aiming to offer Eddie Stobart shareholders a funding package to vote on at the firm's general meeting on Friday.

Eddie Stobart's board has recommended an offer from fund Dbay which would provide a £55m highinterest loan to the struggling haulier in exchange for a 51 per cent stake.

Tinkler told City A.M. he hopes to get support from Eddie Stobart's lenders for a rival package which would involve a £70m to £80m equity raise backed by both existing shareholders and new investors.

"We have got a lot of shareholder support for our deal at the moment. We are working with advisers and the banks to see if we can effect that proposal to give them a secondary resolution on Friday," he said.

It is understood that some of the cash raised would be used to pay down debt to Eddie Stobart's lenders.

Last week, Eddie Stobart said: "[Dbay's] proposal is the only concrete offer to date which has the support of the lenders and secures the long-term future of the company."

Allied Irish Bank, Bank of Ireland, BNP Paribas, and KBC — owed £200m between them — have granted Eddie Stobart a waiver relating to breaches of its credit facility until 13 December.

(c) 2019 City A.M., source Newspaper