Debenhams Takeover Talks Fuel Share Price Growth

Department store group Debenhams has today been the subject of much trading activity following increased speculation of a takeover bid off the back of an increase in the stake held by a Dubai-based investment fund, which has seen share prices rise by as much as 7% on the day.

Saudi-investment group Milestone Resources has today been linked with a possible full blown takeover move for the group after increasing its stakeholding from 8.4% to 9.1%, which sent share prices soaring and led to wild speculation across industry sectors as to the future of the 136-store strong group.

Additionally the move has fuelled speculation that the company’s other major shareholders, like Iceland-based Baugur which holds a 13% stake in the group, could mount a preventative takeover bid for Debenhams over the coming twelve months, which further drove up share prices on the day.

Despite the fact that Baugur recently ruled out a move for the firm, it has been thought amongst industry analysts that now more than ever the group could look to grow its holding up to the required 30% in order to launch a takeover bid.

Debenhams was fortunate enough to survive the worst of the Christmas credit woes, reporting a growth in sales over the Christmas period of some 2.2% despite the wide ranging external economic factors that came to bear on the majoirty of major high street retailers over the last few months.

Whilst no official move for the company has been hinted, it does seem that today’s increased investment by Milestone looks set to step up the chase for Debenhams, creating an interesting dynamic for the year ahead at the nationally renowned department store brand.

Story link: Debenhams Takeover Talks Fuel Share Price Growth