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(Continued from overleaf)
To say that the Al-Fayeds adopt a low profile is to understate the case, but yesterday the silence was briefly broken by Mohamed Al-Fayed.
In his words: 'We are committed to House of Fraser in its entirety. We have given exceptional assurances relating to the continuation and preservation of the business in its present form and the protection of staff.
'If Mr Rowland wants to counter-bid personally, or if he can persuade his shareholders that it is in their interests to support a bid at this price, and with the assurances that we have given, then he should get on with it or shut up. There are 23,000 people in this business and they are as fed up with Mr Rowland's antics as we are.'
Rowland's retort last night was short and sharp: 'That is a typical quote from Mohamed Al-Fayed. Why doesn't he emerge in the open and answer all the relevant questions?'
Is Professor Roland Smith, who has fully supported the Al-Fayeds, confident that the Alfayed Investment Trust is bidding solely via its own resources? 'Yes,' is the blunt reply 'although (less blunt) we have to rely on the assurances given to us by their advisers, Kleinwort Benson. We have to go on what we have been told.'
The Professor adds: 'The 400p offer is a good one for shareholders. It is all cash. What House of Fraser needs is development and investment.'
It is against this background that Borrie and, ultimately, Tebbit must make their decisions this week.
Rowland will press passionately for a referral of the Al-Fayed offer, and the onus will be on the Al-Fayed/Kleinwort camp to prove that the Al-Fayeds are sole principals in every sense.
Other potential counter bidders look few and far between. Sears, which has long eyed House of Fraser or, to be more precise, Harrods, declared it was out of the running as soon as the 400p terms became known.
Alfred Taubman, who acquired Sotheby's for close on £90 million inn 1983, will not pursue a long-standing interest. The message from Chicago last week was: 'On philosophical grounds we would only become involved as a welcome bidder -- a white knight.'
Meanwhile, House of Fraser is expected to shortly reveal 1984-5 pre-tax profits of close on £48 million, with Harrods, the dollar-earning prize, accounting for some £28 million of this.
This week, it will fall on Tebbit to decide who will win the prize.
To refer or not to refer, that is the question.
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