New Look fuels bid speculation
Singh family ‘reviewing’ stake in retailer
July 11 2003
Market rumours of a possible bid for UK fashion retailer New Look have been fuelled by the news that founder Tom Singh is considering a sale of his family’s stake.
New Look said in a stock market statement that Singh, now a non-executive director of the business, “has appointed independent financial advisers who are at an early stage of conducting a strategic review of options for his family shareholding in the company.”
New Look shares hit a record high of 283.5p on the London markets on Thursday, buoyed by rumours in the City that a bid for the business is imminent.
The Singh family owns 28.8 per cent of New Look shares. Last November, the family sold a 5 per cent stake in order to diversify its investments, although Singh did not sell any of the 12 per cent stake he holds personally. Singh and his family trusts also made a commitment at that time not to sell any more New Look shares for a year, a period which expires in four months.
Singh founded New Look in 1969, and floated the business in June 1998. The company operates more than 500 stores and has just completed the full buy-out of the Mim fashion chain in France.
