MELROSE, the AIM-quoted shell that has tabled a £625m hostile bid for Novar, will this week step up its campaign to acquire control of the mini-conglomerate when it launches a stinging attack on the management’s record.

In their offer document, the three Melrose directors are expected to compare their management record at Wassall, the former quoted conglomerate, with that of Novar. Over 10 years Wassall outperformed the FTSE All Share index by 69% while Novar underperformed by the same amount.

Melrose is offering Novar shareholders a mix of shares in their own company and cash.

In return it claims it can run Novar’s three businesses better and extract more value over a three to five-year period.

They believe the strategy of Sir Graham Hearne, Novar’s chairman — to either break up the company now or accept a bid — will shortchange Novar shareholders.

Chris “Jock” Miller, Melrose’s chairman, is expected to argue that because of the movement in his group’s share price, his offer technically now pitches Novar’s shares at 175p, against the 145p at the time it made its initial bid.

Novar has received a number of offers for all of its three subsidiaries. One has been made by General Electric, which is keen on one division, but GE is thought to have indicated that to gain control it may be prepared to bid for the whole company. Other interested parties include United Technologies Corporation.

Melrose is likely to focus on the big deficit in Novar’s pension fund and the potential impact there could be if it is broken up. It will also highlight the £750m that Novar has spent on acquisitions over the past five years, combined with restructuring charges of £300m. Yet operating profits have fallen by 5%.

Hearne appears confident he can achieve a good short-term exit for his investors that will be higher than the offer tabled by Melrose. Novar’s share price closed at 160½p, valuing the company at £692m.