Selfridges bid expected

Selfridges's 'body craze' month is proving a hit

An offer for the upmarket department store group Selfridges is expected this week, according to reports.

Canadian billionaire Galen Weston has emerged as the favourite with a £570m offer, said the Sunday Times newspaper.

He is reportedly planning to make his offer public on Monday after weekend negotiations with the retailer's board.

Selfridges admitted last week that it had been approached about a possible takeover.

Rival offers

Other potential buyers include the Scottish retail entrepreneur Tom Hunter, who recently failed in attempts to buy both the House of Fraser and Allders retail groups, and the billionaire Reuben brothers.

The Reuters news service has said the Selfridges chief executive Peter Williams is also planning to lead a management buy-out while a consortium led by Goldman Sachs is considering making an offer.

Shares in the group gained more than 20% last week as the takeover talk gathered pace.

They ended the week at 355p per share, valuing the group at £548m. Mr Galen is reportedly preparing to offer shareholders between 370p and 380p per share.

Expanding the designer reach

Analysts have said the main attraction for bidders is Selfridges' flagship store on London's Oxford Street.

Despite recent disruption from the closure of the Central Line tube service, the store has an estimated value of £350m.

Selfridges also has two stores in Manchester and plans for a regional roll-out in other cities including Birmingham, Glasgow, Leeds, Bristol and Newcastle.