A SHAREHOLDER in Bolton bar operator Yates Group has launched a fierce attack on the directors over the proposed £93 million management buyout.

Michael Yates, a Stockport businessman, has held 3,000 shares in the company for 15 years. He criticised the independent directors - Christopher Fisher, James Kerr-Muir and executive chairman Mike Hennessy - for recommending the 140p per share offer be accepted. It has been made by Thorium, the company set up by GI Partners, the US company financing the management buy-out.

Speaking as the deal hung in the balance, Mr Yates demanded to know why turnover has dipped 1.2 per cent, from £153.2 million to £151.3 million for the 12 months to March this year.

He went on: "If Thorium have offered 140p, is it not likely that shares are worth a lot more than this?

"To add insult to injury, the independent directors have agreed that if a better offer comes along which they recommend, they will pay £750,000 compensation to Thorium. Why can the directors not do a better job for the shareholders?"

He also slammed the group's sell-off of six underperforming sites in 2003 at a loss of £6 million.

Mr Yates called for the formation of a shareholder action committee to dismiss the current board.

He said: "There is a layer of people in Yates, currently doing an excellent job at much lower salaries, who know exactly what needs to be done to restore profits to previous levels."

Just 14.4 per cent of shareholders accepted the offer when it was made public on June 9. Thorium extended the deadline for shareholders to accept until 3pm tomorrow, but so far only 23.6 per cent have responded favourably. The deal requires 90 per cent acceptance.

It is thought that major shareholders - including the founding Dickson family, who have a 30 per cent stake in the company - are not happy with the offer.

In a statement, Thorium said it would "consider the options available" if the bid was not accepted. Thorium could afford to raise the offer, but GI Partners are understood to be reluctant.

City traders had criticised the offer from the start, saying that 140p per share undervalued the company.

One trader said: "If Thorium give up, the share price will collapse, probably going as low as £1."

Share values in the company continued to fall yesterday, closing at 2p down to 127.5p. No-one from Thorium or Yates's was available for comment.