Moss Bros shares bought by Laura Ashley

Source: Retail Digital

Date :23/05/2008 11:29:22

Laura Ashley has bought a further 2.2 million shares in Moss Bros for 46 pence a share, raising its stake in the retailer to 9.79 percent.

Baugur, the Icelandic investment group, said yesterday that it required more time to put together a takeover bid.

Laura Ashley bought shares four pence above Baugur’s 42 pence a share offer, fuelling speculation from analysts that they are planning a counter bid for Moss Bros.

Board under pressure

Shareholders in Moss Bros have called on the Board to intervene as Baugur announced that it may take another two weeks before approaching the retailer with a formal offer.

The continuing uncertainty has affected business at the retailer as shares in the company fell one pence to 46 pence after Baugur issued its statement.

Last month, chief executive Philip Mountford announced that the Board would welcome rival bids. The potential for a rival bid has seen stock in the group climb recently, reaching 51.25 pence on April 7.

Moss Bros reported a pre-tax loss for the year to January 26 of £1.4 million.

May 23, 2008