UK: British Mohair Subject To Possible Takeover Bid

Poor high street sales and strong overseas competition seem set to claim another well-known textile name.British Mohair Holdings has today confirmed that it has become the subject of a possible takeover bid. It was forced to admit the approach following a steep rise in its share price. Shares are up seven per cent to 146.5p, valuing the business at £18 million.In April the group, which is based in Bradford, reported a full year loss of £2.8 million. At the end of last year it sold off British Mohair Spinners and closed down the Jarol knitting yarn company. Two factories producing yarn for clothing were closed last year, with the loss of 186 jobs.Its remaining textile interests include the Huddersfield-based woollen spinner Stork Brothers. It also has interests in engineering.British Mohair would not disclose the name of the prospective bidder. It did say that if a bid was forthcoming, it would be below net asset value at the end of last year.