CWS files to Regan. Notably, one Sunday newspaper printed the CWS' annual report before it had been officially released. This would later pose a huge threat to the CWS when in 1997 Regan posed a highly ambitious £1.2bn hostile takeover attempt of the CWS. This shocked many in the movement and consolidated support for the CWS as the 'linchpin' of the movement in a way that many had previously opposed. The CWS, under the leadership of Graham Melmoth, was able to defend itself from this takeover bid, largely by informing Regan's creditors that his hostile takeover was based upon dubiously sourced data and bad business practices. The deal also failed because Regan had greatly misunderstood the CWS' complicated ownership structure, assuming that by paying off the 500,000 'active members' he could gain control of the CWS. Though this strategy worked for the carpetbaggers working to demutualise UK building societies at the time, it failed to recognise that the ownership actually lay with millions of ordinary members and that many of these 'active members' were staunch co-operators and who would be unlikely to back the bid. After investigations by a private detective and a subsequent criminal court case, Regan's bid was rejected and two senior CWS executives were dismissed and imprisoned for fraud. An arrest warrant was issued for Andrew Regan in 1999 however he had already emigrated to Monaco. The shock that Regan's bid sent through the co-operative movement has been attributed with sowing the seeds for the reduced hostilities between the CWS and CRS factions which eventually ended with the CRS becoming a member of the CRTG before fully merging with the CWS in 1999. The merger took two years to complete and the launch of the newly combined business, named The Co-operative Group, was timed with the release of the 2001 Co-operative Commission report, chaired by John Monks, which proposed a strategy of modernisation. The report focused on improving store design and building a consistent branding whilst also driving for efficiency savings to make the food business more competitive – the similarity in conclusions between the 1919, 1958 and 2001 reports highlights the distinct lack of progress within the movement during this time. The 2001 report also highlighted the need to market what it called 'The Co-operative Advantage'; a favourite idea of Graham Melmoth, which suggested that commercial success would provide the funding for the social goals of