Londis shareholders meet in Birmingham today to vote on a proposed £60 million sterling (€90.7 million) takeover by Musgrave, writes Jane O'Sullivan, Markets Correspondent.

The bid by the Cork-based distributor and retail franchiser has been recommended by the Londis board but needs 75 per cent of the votes cast at an extraordinary meeting today before it can go ahead.

The 1,896 shopkeepers in the mutually-owned retail chain must decide whether to accept the Musgrave offer, which would see each of them get £31,266 in cash.

If they accept the offer, the shopkeepers will maintain ownership of their businesses and operate as franchisees of a wholesale operation, owned by Musgrave, which will supply them with grocery and fresh products.

Musgrave has already seen off bids from a number of other competitors, such as the co-op off-licence chain Threshers and the Big Food Group.

The Londis board points out that while Musgrave's bid was not the highest, "the combination of price offered and strategic and trading elements commended the proposition to us".

The board has also rejected a proposal from a team of former convenience store executives who say they can offer a better deal to Londis shareholders.

The Lancelot group has said it is preparing an offer that would match Musgrave's but allow shopkeepers with Londis shares to retain ownership of part of the company.

"A purely financial buyer brings nothing to help Londis address the challenges of a fast-changing industry," the board said.

Today's vote, the outcome of which will be made known after the meeting which begins at 3.30 p.m., will bring to a close a six-month saga.

Musgrave's original £40 million offer, made last December, was derailed by controversy over special payments to Londis directors.

If successful in its bid, Musgrave will become the owner of the biggest independent retail franchise operation in the UK with more than 5 per cent of the market.

The company already owns the convenience store chain Budgens, which has 232 outlets.