Moss Bros shares surge after takeover talk

Source: Retail Digital

Date :08/04/2008 11:23:50

Menswear chain Moss Bros Group has seen a ten percent surge in shares following leaks about a secret takeover meeting held by Debenhams PLC.

Shares for the tailoring firm were 51¼p per share at the close of trading yesterday, up 4½p, after reports that department store operator Debenhams were considering a takeover.

This news comes just after an offer was announced by Icelandic retail group Baugur of 42p a share – valuing the company at approximately £40 million. Hopes that a higher bid would come in forced shares up to 46p on Friday’s trading, with shares rocketing again at the start of this week.

Baugur has been given until the end of April to either formalise its offer or walk away from negotiations.

Investors

Various investors have built stakes in Moss Bros, such as Greenwoods founder John Hanson who acquired a 2.8 percent stake and fashion chain Laura Ashley which holds about six percent. Additionally, Moss Bros. has announced that a mystery investor has bought a 7.9 percent stake through French bank Credit Agricole.

Moss Bros. currently operates 150 stores and runs franchise outlets for Hugo Boss and Canali, with operations including Savoy Taylors Guild, Cecil Gee and mail order division Moss Direct.

April 8, 2008