DIRECTORS at Eldridge Pope today launched a new attack in the battle for control of the Dorchester company.

They claimed they had 'serious concerns' over an offer to buy shares by former Weymouth pubs boss Michael Cannon and urged shareholders to refuse his bid.

Mr Cannon hopes to buy 19.31 per cent of the shares in the company at a cost of £7.9 million to add to the 10.68 he already owns.

Now Eldridge Pope directors claim they will not be selling their own shares and have urged other shareholders to stand firm.

A spokesman said: "The board considers that the offer undervalues the company. It considers that the offer is an opportunistic attempt to obtain significant influence over the company without paying an appropriate premium."

He added: "The board considers that the tender offer is not in the best interest of shareholders as a whole.

"It unanimously recommends that shareholders take no action and do not accept the tender offer."

Mr Cannon, who is a former boss of the JA Devenish and Magic Pub Company firms, will own 29.99 per cent of shares if he succeeds.

That amount is just below the 30 per cent mark at which, under national rules, a bidder has to make a takeover for the whole company.

EP directors urged shareholders to refuse the offer after receiving no reply from Mr Cannon when they contacted him.

They claim that, if successful, he may use his shareholding to 'exert significant influence' over the future actions of the company and block resolutions.

Other concerns include his ability to 'influence and potentially to frustrate' future offers for the company.

Directors also blasted Mr Cannon distracting the focus of EP after it adopted a back to basics strategy following a slump in business.

The 'recovery plan' included selling 29 sites and pubs which together made a loss of £690,000 in the 10 months up to July 2003.

Other measures included reducing costs, directing its business at sales in pubs and hotels, and restructuring its management.