Rowlands pull out of Falklands after deal fails

The controversial Rowland family has cut ties with the Falkland Islands’ largest company after its takeover bid failed amid pressure from an Argentine tycoon.

Edmund Rowland, son of Tory donor David, has stepped down as the chairman of FIH Group and his family vehicles have sold their entire stakes in the AIM-listed business, which controls the overseas territory’s property and retail operations.

The Rowlands’ exit could pave the way for a revived takeover tilt from Argentine property mogul Eduardo Elsztain.

His vehicle Dolphin Fund pulled out of making a counterbid to the Rowlands’ £37 million offer amid concern in the Falklands over Elsztain’s intentions, even though the Rowland bid failed to win over shareholders.

Elsztain will have to wait six months before making a bid under UK takeover rules.

The Rowland family vehicles have sold their shares to the family trust of Jerry Zucker, the Israeli-born American businessman who died in 2008.

Zucker is best known as the former owner of Canadian retail giant Hudson’s Bay Company. The trust controls almost 29% of FIH.