Hedge fund offers £400m for Peacocks

After several years as a favoured takeover sector of private equity firms, UK retailing could be facing its first hedge fund acquisition.

Value fashion chain Peacocks is at the centre of feverish speculation that last month's unnamed bidder for the company was a hedge fund, comprising six funds including Och-Ziff Capital. The bid, thought to be about£400 million, is fronted by Goldman Sachs.

Last month, Peacock's board issued a statement saying it 'noted the recent share price rise and confirms that it has received an indicative approach that may or may not lead to an offer being made for the company'.

It also stressed that discussions were at 'a very preliminary stage and that the proposals being considered are subject to a number of material pre conditions and there is no certainty that any offer will be made for the company'.

While hedge funds have started to emerge as bidders for companies in the US, private equity firms in the UK had hoped that participation in the UK would be confined to debt provision to finance their leveraged buy-outs.

Peacock Group consortium bidder Och-Ziff lent money to Malcolm Glazer for his controversial purchase of Manchester United.