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Laura Ashley increases stake in Moss Bros

By FashionUnited

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Quintessentially English retailer Laura Ashley increased its stake in menswear retailer Moss Bros, fuelling speculation that it could be making a bid for the chain. Moss Bros is currently subject to an indicative 42p-a-share takeover approach from Icelandic investor Baugur, that owns 28.75pc of the retailer. Accoring to the Telegraph, Laura Ashley has been slowly increasing its holding and is thought to have not yet ruled out bidding for the under-fire chain. Yesterday Laura Ashley bought 100,000 Moss Bros shares at 46p each through its Bagleys Investments subsidiary, taking its share to 5.96pc.

Although the Moss Bros board has allowed Baugur to carry out due diligence, members of the retailer's founding Moss and Gee families, who together hold 26pc of the company, oppose the move on the grounds that it undervalues the company.

Meanwhile, a renegade shareholder, John Hanson, the founder of the rival Greenwoods menswear chain, has been looking to assemble a rival consortium to bid for the chain.

Laura Ashley is 34pc owned by Malayan United Industries. Under the leadership of the current Chief Executive Lillian Tan, the company has returned to profitability, posting profits of £12 million for the year 2006/2007. In April 2007 the company launched its first range of organic cotton fashion - the Archive Collection, based on Laura Ashley styles and prints from the 1960’s and 70’s.

Laura Ashley
Moss Bros