Baugur raises House of Fraser stake
Icelandic retailer vies for role in department store merger
October 28 2003
Icelandic retailer Baugur has increased its stake in House of Fraser.
Baugur bought 4.5 m shares in the department store group at the end of last week, taking its total holding in HoF to 10 per cent.
The City believes Baugur hopes to play a part in any further consolidation in the UK department store sector. Terry Green, chief executive of Scarlett Retail, which bought rival Allders earlier this year, is known to have made a preliminary approach to HoF this summer.
Entrepreneur Tom Hunter, who abandoned takeover plans for HoF at the start of this year, has also bought more shares recently, taking his stake to 11 per cent.
Baugur recently successfully backed the management buyout of toy retailer Hamleys, and also holds shares in food retailers Somerfield and Big Food Group.
