LONDON-UK investor Philip Green has dropped his bidding partner Baugur and is pressing ahead alone with his £772 million ($1.2 billion) takeover of the 1,071-store Arcadia Group.
Baugur, an Icelandic retailer with a 20% stake in Arcadia, has given up any claim to the stores but is still using its holding to back the 408 pence-a-share offer by Green’s takeover company, Taveta Investments Ltd.
Green had originally made selling Arcadia’s Top Shop, Top Man and Miss Selfridge chains, comprising just under half the store portfolio, to Baugur a condition of his offer. But these plans were thrown into disarray when Baugur announced police had searched its offices. Baugur denied any wrongdoing.
The statement by Taveta said: “Despite extensive negotiations between Taveta and Baugur, the parties have been unable to reach agreement on the sale to Baugur of the Arcadia assets.” It adds that Green may still decide to sell the businesses but it would do so though a competitive process.
The Arcadia board has already rejected an earlier 365 pence a share proposal from Green. But has delayed making a decision on the higher offer until the position with Baugur had been clarified.