Formal offer may be some way off
House of Fraser has confirmed that is has been approached by Baugur and that discussions are continuing between the two parties on the basis of a potential cash offer for the whole of the department store operator's share capital at 148p per share.
In a statement to the Stock Exchange the retailer said that 'the process remains at an early stage and there can be no certainty as to whether any formal offer will be forthcoming.'
Some observers are sceptical that the bid will amount to anything with Nick Bubb, analyst at Evolution asking whether Baugur might find 'something nasty' in the books when due diligence is undertaken. He added: 'We are not confident about the chances of a bid actually materialising and the vibes on trading are not good.'
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