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Permira makes E1.5bn move on UK retailer Debenhams

UK retail chain Debenhams is following in the footsteps of Selfridges, which was officially offered to Canadian billionaire Galen Weston earlier today, by becoming the latest retail operation to attract the attention of private equity firms. UK-based pan-European Permira has confirmed a bid of E1.54bn for the UK outfit.

Permira is proposing a 425 pence per share all cash offer, 28 per cent above Friday's closing stock price. The proposal is preliminary and subject to due diligence and financing, according to a report by Bloomberg.

Debenhams joins rivals such as Selfridges, House of Fraser and Somerfield in attracting takeover interest and there is some speculation that Permira's approach may encourage those who missed out on Selfridges to turn their attention to Debenhams.

Scarlett Retail, the group that won control of Britain's fourth-largest retail chain Allders earlier this year, may also be interested in acquiring Debenhams, amid speculation that Permira's initial offer may be too low to seal the deal.

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