Signet jewelers refuses big

The largest shareholder in Signet, the jewellery retailer, has dismissed a possible 132p-a-share bid for the company as too low.

David Herro, the veteran fund manager at US-based Harris Associates, which holds almost 13 per cent of Signet, said a mooted £2.3bn offer for the company by Apax and KKR, the private equity groups, would undervalue the retailer. Herro's remarks follow similar comments from smaller institutional shareholders last week. Those shareholders also suggested that they would block attempts to take Signet private on the basis that it could achieve private equity-style returns as a public company.

The growing resistance will add to doubts that Apax and KKR will launch an offer at all. Earlier this year, Signet held tentative merger talks with Zale, its US rival. Signet's shares closed on Friday at 113.5p.