Baugur investments boosted by speculation

Shares in Woolworths and Moss Bros lifted as the market looked forward to Baugur's much anticipated restructuring of its key investments in the New Year. The acquisitive Icelandic investment group controls 10 percent of the struggling Woolworths and is expected to demand a restructuring after the company issued a second profits warning before Christmas. An announcement of a possible takeover or breakup is expected to take place during Woolworth's trading update in January, reports the FT. Share in Woolworths rose 2 percent as a result.

Meanwhile, menswear chain Moss Bros, saw its shares rise 16 percent on speculation that Baugur would make an estimated £80 million offer for the company. Moss Bros declined to comment. Baugur could not be reached for comment. There has also been increased speculation that the chain might be a target for private equity group Dawnay Day, which recently took over fashion chain Austin Reed.