International News - Baugur seeks to go private to avoid limelight

Acquisition-hungry Icelandic group Baugur is likely to go private by the middle of June. The deal follows an IKr26 billion (£200 million)bid offer made last Friday by holding company Mundur.

Mundur comprises Gaumur - Baugur chief executive Jon Johannesson's family investment company - investment bank Kaupthing and two private investors.

A Baugur spokesman said there were a number of reasons for going private. 'Given the current markets and lower liquidity in stock, the period ahead will be one of consolidation. It is also to get away from the political debate they've been dragged into,' he said. Baugur has been criticised by politicians and been the focus of a fraud investigation.