76-year-old B&B owner reduces risk New World company takeover

A 76-year-old bed and breakfast owner from Malvern has reduced the risk of having to mount a takeover bid for an Aim-listed oil explorer in which her son unwittingly bought a 49 per cent stake, after more unsettled trades were reported to the London Stock Exchange on Thursday.

Judith Williams, whose 38-year-old private investor son Chris Williams has a penchant for small oil stocks, found herself at the centre of a media storm after he bought what he thought was a 10 per cent stake in the Belize oil minnow New World Oil and Gas in her name.

However, he apparently purchased the stake without realising that the company's proposed £1.5m placing had yet to complete, meaning the acquisition of 342m shares gave his mother a theoretical 48.8 per cent stake in the company, prompting a short squeeze.

The Takeover Panel ruled this week that if Mrs Williams "receives delivery" of the shares purchased into the Crest settlement account of her broker - which carry 30 per cent or more of the voting rights - she would have a duty to make an offer for the whole company.

However, the Panel also noted that a "substantial proportion" of the shares sold had not been settled. The LSE has reported settlement delays after trading volumes equivalent to several times the number of shares in issue occurred in the days following the April 29 announcement of the fundraising.

Mounting a bid for Jersey-based New World is a far cry from the pensioner's day job of running the Wyche Keep Country House bed and breakfast in the Malvern Hills, which charges £45 a night including a traditional English breakfast and offers guests "candlelit dinners" in which "game is often featured."

New World said on Thursday that following further unsettled trades, Mrs Williams had reduced her effective stake to 35.6 per cent.

"New World notes both the movement in the company's share price and speculation about the company as it appears on websites, but comments now that there are no further corporate developments which require an announcement," it said in a statement.

Daniel Levi Associates, which is advising the Williams family, said it hoped to sell down more of the shares to take the stake under the 30 per cent mark.

"Chris was given the wrong information from the nomad [the company's advisers]," said Daniel Levi, partner at the advisory firm. "Brokers and market makers are assisting the Williams family."

He said that while Mrs Williams had been perturbed by the journalists knocking on her door, her attitude to the unfolding drama was "oh, just leave it to Chris".

Mr Levi said that Mr Williams had intended to buy the original 10 per cent stake to submit requisitions to an emergency general meeting scheduled in Jersey next week calling for the removal of New World's board.

Describing his company as a "corporate raider trying to work in the best interests of shareholders" Mr Levi issued a colourful letter of requisition on Monday criticising the "financial hyenas who are tearing the company apart", proposing a 150-day turnround plan and the replacement of certain directors, and stating that New World "now stands on the precipice of self-destruction".

He complained that "hundreds if not thousands of shareholders have been wiped out."

Confirming that an emergency general meeting would take place in Jersey on May 19, New World issued a clarification on Thursday stating that "only those shareholders registered in the Register of Members of the company as at 1pm on May 15 2015 shall be entitled to attend or vote at the EGM."

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