Baugur ups stake in Big Food
Icelandic retailer goes shopping in grocery sector
December 23 2002
Icelandic retailer Baugur Group has increased its stake in Big Food Group, owner of the Iceland supermarket chain, to 19.3 per cent.
The additional stake in Big Food follows Baugur’s acquisition of a three per cent stake in rival food retailer Somerfield, operator of the Somerfield and Kwik Save chains, last week.
Baugur insists its investment is simply a gamble on its belief that shares in both retailers are undervalued, and that each is likely to be the subject of a takeover by a bigger player at some point. The company is said to be close to achieving the stake it wants in Big Foods, and is also in the market for more Somerfield stock.
Baugur also has an eight per cent stake in department store chain House of Fraser, which it has pledged in support of the takeover offer tabled by Tom Hunter.
