VENTURE capitalists and well heeled investors are squaring up for bidding wars over two of Britain’s top retailers.
CVC Capital Partners and Texas Pacific have begun working on a bid for Debenhams, the High Street chain that has already received a pounds 1.5bn approach from rival venture capitalist Permira.
At the same time, property tycoon Robert Tchenguiz is expected by this Friday to offer as much as pounds 650m for upmarket department store Selfridges, trumping a pounds 628m offer made by Canadian billionaire Galen Weston.
The frenzy of activity reflects the widespread view in the Square Mile that the gloom over retailers – particularly those with valuable central City stores – was overdone.
CVC and Texas Pacific are being helped in their bid for Debenhams by John Lovering, who was until two weeks ago stalking the Somerfield supermarket chain.
Their move may put Debenhams chief executive Belinda Earl and finance director Matthew Roberts in an awkward position. The duo have faced criticism for their close relationship with Permira and will now have to work with both bidders.
Tchenguiz is thought to be planning to split Selfridges in two. Its estimated pounds 430m of property would be transferred to Rotch, the family-owned property company, while a separate company would operate the stores.
His expected 400p-a-share bid is thought to have won the backing of overseas investors, although there remain doubts that he will be able to muster sufficient cash.
Selfridges’ board has agreed to Weston’s 387p-a-share bid.
