Bid values department store chain at £356 million
According to reports this morning Icelandic investment group Baugur has tabled a£356 million bid for House of Fraser, which has been given informal approval by the department store's board. The bid values the company at about 150p a share, a premium of some 10 per cent on this morning's early price of 136p.

House of Fraser has been in talks with Baugur since last month and it was widely anticipated that a move was imminent. Should the bid prove decisive, Baugur will add the department store operator to a UK portfolio that includes Hamleys, supermarket Iceland and retail group Mosaic.

Seymour Pearce analyst Richard Ratner said: 'This is absolutely no surprise at all. I valued it at£1.60, but it's totally arbitrary. At£1.50 [a share] it's enough.'

Seymour Pearce said that it did not expect that there would be a competing offer.

House of Fraser made comment on the approach.

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