Austin Reed rejects bid

British fashion retailer Austin Reed has rejected a bid from Guy Naggar and Peter Klimt late on Friday. The property investors made the 131p a share bid through Dawnay Day Corporate Finance, which already has a 29.9 percent stake in Austin Reed. The bid values the company at £41 million. Austin Reed rejected the bid as "hostile", stating that the approach undervalued the company. Naggar, a former deputy chairman of Charterhouse Bank, began building his stake in the company in February 2004. Klimt is a board member of Dawnay Day, with whom he formed a joint venture investment company in 1989. According to the FT, they are thought to be eager to acquire control of the retailer's flagship store on Regent Street , which was recently valued at more than £23 million. Austin Reed is being advised by Close Brothers. The company refused to comment.