Ahmed building Woolworths stake
Jeans entrepreneur gambling on new takeover tussle
September 22 2003
Entrepreneur Shami Ahmed reported to have built up a 2.6 per cent stake in UK retailer Woolworths, gambling that the chain may be the next big takeover target after Safeway.
Ahmed, founder of the Joe Bloggs clothing brand, would have to confirm his interest to the stock exchange if his stake rises above 3 per cent. The Guardian newspaper reports that he will reach that level by the end of this week, and may increase his holding to 10 per cent.
Woolworths, which last year held merger talks with Philip Green, is seen in the City as a potential takeover target as the major retailers look for more space. Wal-Mart, owner of the Asda chain, has also been speculatively linked to interest in the business.
Ahmed, who holds shares and voting rights through contracts of differences with broker Cantor Fitzgerald, is reported to view the stake as an investment rather than planning a bid himself.
The entrepreneur owns 21 per cent of menswear retailer Moss Bros and has built up a 7 per cent stake in rival clothing retailer Austin Reed. There has been speculation that he might want to broker a merger between the two.
