Hamleys views rival offers

The bidding war for the Hamleys toy shop chain has gathered pace following news that the store's directors have withdrawn their backing for an original takeover.

Directors had originally recommended that shareholders accept a £52.2m ($86.2m) bid from the Icelandic retailer Baugur together with members of Hamleys' management team.

But a higher offer from Tim Waterstone, founder of the Waterstone's book stores, has thwarted the plans.

Mr Waterstone has offered £53.1m for the group, based on London's Regent Street.

Hamleys said in a statement that it would now "hold further discussions with the parties interested" and advised shareholders to take no action until further notice.

Shares rose just 0.5p to 232.5p on Monday but have jumped more than 100p since the bid speculation began in March.

Expansion plans

Besides the famous store in central London, Hamleys also has outlets at Heathrow Airport, Covent Garden in central London, and at Schiphol Airport in Amsterdam.

It is also rolling out a chain of specialist Bear Factory shops in the UK, with 30 stores so far.

Mr Waterstone has already made a move into the toy market, with his "Daisy & Tom" chain of shops, upmarket clothing and toy stores for children under eight years old.

"Hamleys is a fantastic brand and we believe the acquisition of Hamleys by Children's Stores will provide a number of synergies with the Daisy & Tom business, assisting Hamleys to continue to grow and prosper," Mr Waterstone said last Friday.