Consortium formed for approach
Two heavyweight US private equity firms have formed a consortium to make an approach for New Look, according to The Daily Telegraph.

By joining forces, Texas Pacific Group and Warburg Pincus could encourage other bidders to form consortiums or deter formal bids altogether. This may scupper banker Merrill Lynch's hopes of raising£2 billion for the chain in the upcoming auction.

Yesterday, New Look reported that sales at the fashion chain were expected to peak at more than 1 billion in the year to March 2007, showing an 18 per cent increase.