Hamleys bidding frenzy puts City on tenterhooks

Investors waited with bated breath as Retail Week went to press to see whether entrepreneur Tim Waterstone would increase his offer for Hamleys.

Retailers and analysts have watched goggle-eyed in amazement as the bidding war between Baugur and Waterstone has pushed up Hamleys' value to almost£59 million. At the start of the year the retailer had a market capitalisation of£37.5 million.

Evolution Beeson Gregory analyst Nick Bubb described the bid situation as 'extraordinary'.

Last week, Baugur increased its offer to 254p per share. Richard Ratner of Seymour Pierce said: 'We wait to see if Waterstone returns fire and puts in a more ludicrous offer.'