Baugur hopes to broker Allders deal
Department store retailer confirms takeover approach
November 21 2002
Icelandic retailer Baugur has made a bid for UK department store retailer Allders, according to reports.
Baugur may hope to broker a merger between Allders and rival chain House of Fraser, in which Baugur took a 7.4 per cent stake last month.
An Allders statement confirmed that “that it has received a preliminary approach from a third party which may or may not lead to a cash offer for the company. Discussions are at an early stage.”
The bidder is believed to be Baugur, which has been trying to build up a 10 per cent stake in Allders since the end of last week, offering City institutions around 127p-a-share. The Icelandic retailer may have the support of property company Minerva, which has a 25 per cent stake in Allders.
With consolidation in the UK department store sector seen as inevitable by most observers, Baugur and Minerva’s joint stake in a combined Allders/HoF business would be considerable.
