HMV says it has received a bid |
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Published
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Mon, 30 Jan 2006 14:30
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LONDON: Music, games and books retailer HMV Group Plc. said it has received a bid approach, but refused to give details or name the company. Sources, however, indicated that the suitor is private equity firm Permira Advisers Ltd., which has already engaged Merrill Lynch to advise it.
There are also reports that other private equity companies -- Kohlberg Kravis Roberts & Co. and Blackstone Group LP -- too had shown interest in the troubled music company, which had issued a profit warning this month.
HMV, admitting that there has been a bid, said it is a preliminary approach and it would announce details in due course.
There are reports indicating Permira is quoting a price of around 800 million pounds.
HMV has a plan to acquire bookseller Ottakar's Plc., but the issue is now before the Competition Commission, which is coming out with its preliminary report in March.
The group, which runs HMV music stores and Waterstone's bookstores, has been plagued by problems. Its share prices have dropped by nearly 35 per cent in the recent past, the digital music and downloading from the net have been causing immense harm to the prospects of its CD sales and this month chief executive Alan Giles has said he is leaving the company. Its pre-tax profits had fallen to 0.2 million for the 26 weeks to 29 October, down from 10.5 million pounds during the same period last year.
HMV Group came into being 1998 following the merger of EMI Group Plc.'s music stores with Dillons and Waterstone's bookstores. The company's first music outlet was started way back in 1921 on London's Oxford Street. It owns around 200 stores in Britain under its own name and an equal number under Waterstone's. It has visible presence in Asia and Canada.
HMV shares were up as much as 25 per cent at 189 pence in the morning trading.
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Battle for Ottakar's intensifies 