HOF Board responds to rumours
The board of House of Fraser has issued a statement this morning about recent press speculation and has confirmed that the HOF has had a very preliminary approach that may or may not lead to an offer being made for the company.
The statement continued, “There can be no certainty that an offer will be made nor as to the terms on which any offer might be made. A further announcement will be made in due course”.
Steve Davis, at Numis Securities says, “We’ve been here before. In February/March, the company was approached by an unnamed suitor, widely rumoured to be Apax. Those talks were terminated without a formal offer being made. We therefore note the cautious nature of this morning’s statement. Press speculation points to Baugur and Tom Hunter as being the suitors. This looks credible given that the former holds a stake of around 9.5% in House of Fraser”.
