Baugur has been stakebuilding
House of Fraser has revealed that it has received a 'very preliminary' approach that may lead to an offer for the company. The group did not say who had made the approach. Shares in the company rose almost 9 per cent this morning following the news.
Speculation over a possible takeover of the department store chain rose early last month when Baugur bought a 9.5 per cent stake in the department store group.
The Icelandic investment group has expressed an interest in House of Fraser before. In 2002, along with retail entrepreneur Tom Hunter, it spent a year building a stake in the company before deciding against making a bid and selling its holdings.
Baugur has a strong presence on the UK high street. It owns names such as Oasis, Karen Millen and Hamleys. It also has a 10 per cent stake in Woolworths and a 14 per cent holding in French Connection.
House of Fraser has recently been subject to takeover interest from private equity firm Apax, but talks between the two ended in March.
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