Debenham’s shares soar after bid rumours

There is speculation that Mahesh Jagtiani, the retail entrepreneur, may be plotting a bid for ailing retailer, Debenham’s. Shares in the retailer soared nearly 15% after the news.

Mr Jagtiani, an ex-London taxi driver and hotel cleaner who runs the Dubai-based fashion chain Landmark Group, has acquired 7% of the retailer. However, Debenhams insists it is not a bid alert.

Along with other retailers, Debenham’s shares have suffered on fears of poor Christmas trading.

Mr Jagtiani has connections with the Icelandic investment group, Baugur, who own a 13% stake in Debenhams. It is believed that the 2 investors are working together on a bid for Saks, the US department store chain.

Analysts believe that Mr Jagtiani’s can afford to purchase Debenhams. Back in June, he considered a £1.8 billion takeover of fashion chain New Look.

The Dubai-based business, The Landmark group, has over 600 fashion outlets and a series of hotels in the Middle East and Asia, in addition to running fashion chain New Look and upmarket Kurt Geiger shoe stores under franchise in the region. Landmark was established in 1973 with just one shop in Bahrain.

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