Baugur linked to HoF buyout

Published on Monday 1 May 2006 14:36

BAUGUR, the Icelandic investment group, was today thought to be behind a bid for House of Fraser after the department store chain confirmed it had received a "very preliminary" approach.

The group said in a statement that it had received an approach which may or may not lead to a takeover offer. The statement was issued following reports over the weekend the board had held an emergency meeting on Friday.

HoF declined to elaborate on the statement, but it is widely thought the mystery suitor is Baugur. The Icelandic group sent HoF's shares to an eight-year high early last month after buying a 9.48 per cent stake in the company for around 29 million.

Baugur has built up a retail empire in the UK that includes the Iceland supermarket chain, tea and coffee vendor Whittards of Chelsea and toy store Hamleys.

It also has a ten per cent stake in Woolworths and was part of the consortium led by Sir Tom Hunter that secured a 311m takeover of Wyevale Garden Centres last month.