By Will Smale BBC Online business reporter

Londis shareholders are each set to get some �31,000

Welcome to the story of convenience store group Londis, a lively tale that includes accusations of 'fat cat' greed, shareholder power and, hopefully, a happy ending.

Londis shareholders meet on Tuesday to vote on whether the company should be bought by Irish retail group Musgrave. They are expected to almost universally back the takeover.

The shareholders, the majority of whom are also Londis shopkeepers, are each in line to pocket about �31,000 from the �60m deal.

It will bring to an end six months of takeover to-ing and fro-ing that has seen four Londis directors lose their jobs and shopkeepers successfully fight for a bigger share of the takeover windfall.

Shopkeeper's anger

The saga first started last December when it was revealed that four Londis directors had agreed to sell the company to Musgrave for �40m, in a deal in which they would have pocketed �20m, or �5m each.

By contrast, the shopkeepers would have received only �10,000 each and, to put it mildly, they were not impressed.

Their antagonism was further fuelled by the fact that Londis is a mutual company, and so in theory should be run in the best financial interests of each and every member.

We believe the takeover will comfortably get the 75% of the vote it needs John Wood, editor The Grocer

In response, the shopkeepers formed a pressure group called Londis Shareholder Action Group (LSAG).

Amid much fury and media coverage, the Londis board was forced to withdraw its support for the takeover and accountancy giant KPMG was appointed to oversee an open sale.

Backing

However, the damage was already done for the four directors who had originally stood to get �5m each and in March they stood down from the board.

The four - Graham White, Andrew Wallace, Terry Bedford and Denise Buller - will instead get a total of �2m in compensation - between them - for dropping their rights to the �20m.

A few other companies subsequently expressed an interest in taking over Londis, including Big Food Group and some former executives of rival shops group T&S Stores under the name Lancelot.

However, until today only Musgrave, which owns Budgens, made a definite offer - �60m, which is to be shared more equally at Londis.

Lancelot has since returned with a last minute offer of �63m, which includes buying a minority 40% interest in Londis for �25.2m, and leaving 60% of the company in the hands of the shopkeepers through a share issue.

However, it is unlikely that this will be considered at this late stage.

Instead the Musgrave offer has the support of LSAG, after the Irish firm met the pressure group's leaders and held a number of roadshows to explain its plans, including more fresh and chilled products on the shelves.

John Wood, news editor of trade magazine The Grocer, said his impression was that the Londis shareholders will vote in favour of the Musgrave takeover.

"With the main pressure group now in favour, we believe the takeover will comfortably get the 75% of the vote it needs," he said.

Cheaper prices

Kishor Patel, chairman of the LSAG, said the �31,000 will mean a lot to most of the shopkeeper shareholders.

2,200 UK stores Four formats - convenience, neighbourhood, supermarket, forecourt 600 own-brand products

"We were originally opposed to the takeover, but Musgrave has been very good and open in meeting with us to share their plans," he said.

"It has also agreed to meet certain issues which we have brought up, such as improved fresh and chilled foods and lower prices.

"It is sad that Londis will lose its mutual status, but the company needs an influx of capital that it simply does not have on its own."

And any sadness felt by shopkeepers is likely to be offset by the prospect of a cash windfall and a happy ending to the corporate wrangling of the past six months.