Retailer ponders £802 million bid for chain
Private equity firm Permira has reportedly increased its offer for music and entertainment group HMV to about 200 pence a share, valuing the company at£802 million.
The group had its previous offer of 190 pence per share, or£762 million, rebuffed by HMV. The retailer is now understood to be evaluating the renewed bid, with its advisers UBS and Citigroup.
Permira has teamed up with Clear Channel chairman Roger Parry for the approach and Parry would become executive chairman of HMV were they to be successful.
For a bid to be accepted Permira requires the board's recommendation, as well as support from HMV's top three shareholders - San Diego-based investor Brandes, Barclays Global Investors and Aberdeen Asset Management - which between them control about 35 per cent of the share holding.
HMV refused to comment.
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