Matalan and Tesco play down merger rumour
Takeover report boosts clothing retailer’s shares
September 22 2003
Reports that supermarket giant Tesco and discount clothing retailer Matalan have held merger discussions have been firmly played down by both companies.
Matalan shares rose sharply in Monday, up 3.2 percent to 211p, following a report in the Mail on Sunday which said the two retailers had been held talks until early this year, which could now be resurrected.
Neither company commented directly on the report, but news agency Reuters quoted ‘sources familiar’ with Matalan which said “John Hargreaves and Terry Leahy have never met.” Hargreaves, founder of Matalan, was said by the report to want to retain control of the business, while other members of the family are reported to be keener to explore a sale.
Matalan was also recently linked to interest from Asda owner Wal-Mart, which is trialing stand alone clothing stores using the George brand.
