Ahmed bankers raise Moss Bros stake
Latest move may signal struggle for control
October 20 2003
Investment banker Cantor Fitzgerald Europe has raised its stake in fashion retailer Moss Bros to more than 28 per cent.
The latest acquisition of shares by Cantor Fitzgerald, which has previously built up a stake in the UK retailer on behalf of fashion entrepreneur Shami Ahmed, may signal that Ahmed is close to making his next move.
Ahmed, founder of the Joe Bloggs jeans brand, launched a protracted bid for Moss Boss which he dropped 18 months ago. Cantor Fitzgerald has since built up the stake on his behalf, while transferring voting rights to Ahmed.
Around 22 per cent of Cantor Fitzgerald’s stake, which now totals 28.41 per cent, is held on behalf of Ahmed under Contract for Difference arrangements.
A 30 per cent stake would normally trigger intervention by the Takeover Panel to call for a formal bid to be launched. Moss Bros said it has not received notification from Ahmed that his interest has increased due to Cantor Fitzgerald’s latest acquisition.
Ahmed has been critical of Moss Bros chief executive Keith Hamill, who recently suggested that bid speculation has overvalued the group’s shares. Ahmed was reported at the weekend to be rallying other shareholders behind a bid to oust Hamill.
Cantor Fitzgerald also holds a stake of more than 11 per cent in Moss Bros rival Austin Reed. Ahmed holds voting rights in more than 9 per cent of this stake.
