Debenhams backs chief's role in DFS takeover bid

DEBENHAMS believes there is no conflict of interest if chief executive Rob Templeman teams up with private equity group Cinven to look at a £500 million bid for sofa chain DFS.

Templeman is set to renew his relationship with private equity in a bid for DFS, which Lord Kirkham founded 35 years ago and subsequently floated before taking it private for 507m in 2004. It is believed that Templeman would only have an advisory role in any bid for DFS.

Debenhams' directors are understood to feel their chief executive would be within his rights in taking up a non-executive position with DFS as many chief executives hold non-executive positions.

A further twist is that such a move could pit Templeman against his current Debenhams chairman, John Lovering, who is due to the leave the company shortly.

Lovering is said to be working on a rival bid for DFS, Britain's biggest sofa chain, with private equity group Permira.

Templeman, who headed furniture group Harveys in the 1990s, has also worked for the then- private equity owned Homebase, which Lovering chaired.

That was before Templeman joined a consortium with Lovering, CVC, TPG and Merrill Lynch Global to take Debenhams private in 2003 before refloating it in 2006.

Debenhams refused to comment.