Bidder extends Allders offer

The company bidding for the department store chain Allders has given shareholders an extra week in which to accept its takeover offer.

But Scarlett Retail, the firm set up by property firm Minerva, warned that it may let the offer lapse if it is not backed by enough shareholders by the new deadline of 5 February.

Scarlett, which is owned by Minerva, Lehman Brothers and retailers Terry Green and Phil Cox, currently owns 37.2% of Allders shares.

The department store group has been at the centre of a bidding war, with retail entrepreneur Tom Hunter also considering an offer.

Mr Hunter has built a 10.8% stake in Allders which could be used to block Minerva's bid.

Last week Mr Hunter abandoned plans to takeover the department store chain House of Fraser.

He was thought to be interested in merging parts of the two businesses in order to cut costs.