Duke turns up heat on Esporta

VENTURE capitalist Duke Street has gone hostile with its £133m takeover move for struggling fitness group Esporta. Duke Street, also plotting a float of its DIY chain Focus-Wickes, has been stalking the group for months but has failed to win the board's backing for its takeover.

Esporta rejected the offer, telling shareholders to take no action. It said the bid materially undervalued the business - a repeat of its response to Duke Street's unofficial tilt earlier this month.

However, in Duke Street's offer to shareholders the predator launched a withering attack on Esporta's business, focusing particularly on its disastrous attempts to expand on the Continent.

Duke Street said it was willing to retain the management team recently installed to rescue the company, but said it needed to perform some radical surgery on the group to nurse it back to health.

The venture capitalist has built up a 23% stake, having bought shares from, among others, Esporta's two main institutional investors, Merrill Lynch and Schroder Salomon Smith Barney. However, they remain big shareholders and Duke Street is yet to convince 10% holder Crown Leisure that its 80p-a-share offer is adequate. Esporta shares lost 1 1/2p to 81p in early trade.