Takeover fever continued in Britain's retail sector continued yesterday when Debenhams, the mid-market department store chain, said it had received a £1.54 billion sterling (€2.15 billion) offer.
The news came as rival Selfridges, best known for its flagship store on London's Oxford Street, announced it was being sold to Galen Weston, the Canadian billionaire, for £600 million.
The deals prompted speculation that others could follow.
Debenhams said it had received an indicative proposal from Permira, the venture capital group, at 425p a share. Shares in Debenhams, the UK's second largest department store operator with almost 100 stores, jumped 78½p, or almost 24 per cent, to 409¼p.
The retailer has freed Belinda Earl, chief executive, and Matthew Roberts, finance director, to work with Permira.
People close to Debenhams said Permira - formerly Schroder Ventures - had been given six weeks to carry out due diligence before coming back with a proposal.
"The interest from Permira was at a level which the board felt they had to look at," said one. Two years ago Permira bought Homebase, the do-it-yourself arm of J Sainsbury, and sold it to retailer Great Universal Stores last November for £900 million.
It is understood that Permira approached Debenhams some time ago and came up with its proposal last week. - (Financial Times Service)
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