Permira sweetens offer for HMV to 210 pence for a share |
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Fri, 10 Mar 2006 18:05
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LONDON: Music store HMV Group Plc. said it has received an improved cash offer at 210 pence-a-share from equity firm Permira Advisers Ltd and that its board is considering the conditional offer.
At 210 pence-a-share, the company is valued at 842 million pounds.
The revised offer follows rejection by HMV of a 190 pence-a-share offer made in February as too low.
Analysts are surprised at the interest of Permira in HMV, which is virtually struggling in order to keep aloft what with threats of digital download, large scale piracy and encroachment by supermarkets.
HMV, which owns book store Waterstone's, has made a 96.4 million offer for smaller bookseller Ottakar's Plc. The proposed deal is being investigated by the Competition Commission. Its provisional findings are expected at the end of March.
Shares in HMV had closed 5.4 per cent higher at 192 per cent.
Permira is said to be trying to get Roger Parry, chief executive officer of Clear Channel International Ltd., to head HMV, replacing its CEO Alan Giles.
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