Moss Bros bid abandoned

By: Leonie Barrie - 27 May 2008 16:27

Whatever Laura Ashley’s motives in building up its stake in Moss Bros, it has certainly managed to scupper Baugur’s proposed takeover of the struggling suit retailer. The Icelandic investment group today pulled out of the GBP40m deal, blaming its decision on “significant changes” to the composition of the company's share register.

While Baugur has been carrying out its due diligence and arranging funding since making its bid back in February, home and fashion retailer Laura Ashley has quietly doubled its shareholding in Moss Bros to around 9.79%.

But Laura Ashley continues to insist it merely sees this as an investment opportunity, even though it bought shares priced above Baugur’s GBP0.42 per share offer and would certainly benefit from adding men’s wear to its product line-up.

Moss Bros’ founding families were always vehemently opposed to Baugur’s bid, but I wonder how they’re feeling now? Share prices fell 13.2% to 39.5 pence in early morning trading today.

UK: Baugur opts out of GBP40m Moss Bros bid