Bid rumours swirl around MFI
GUS and Kingfisher linked to approaches
MFI has seen high levels of trading in its shares as the City speculates that a bid approach for the furniture retailer is imminent.
MFI’s share price leapt by more than 5 per cent on Thursday as rumours persisted that retail group GUS, owner of Homebase and Argos, was about to launch a takeover.
B&Q-owner Kingfisher is also said to be considering a bid, which may focus on MFI’s successful Howden Joinery trade supply business. Private equity firm Permira has also been named a suitor for the underperforming business.
MFI issued a profits warning in September, citing “significant issues” with its new supply chain system, which meant orders were not being delivered. It said the the Howden’s business had continued to perform strongly.
MFI has said it wil issue an update on its progress in adressing its systems and supply chain issues on November 16. Some analysts have suggested that a bidder would be unlikely to show their hand before that.
