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Tuesday, 26 June, 2001, 11:17 GMT 12:17 UK
Body Shop plunge as talks end
A Body Shop store
Body Shop: No formal offer from Mexican suitor
Shares in Body Shop have taken a steep dive after the firm announced that talks about a possible takeover have been terminated.

The UK-based ethical cosmetics retailer had been discussing a deal with Mexican company Grupo Omnilife, thought to have been worth about 300m ($423m).

But the talks had been at a preliminary stage, with a deal thought to depend in part on the ability of privately-owned Omnilife to borrow about $250m for the purchase.

As the news broke, Body Shop shares plunged, losing more than a quarter of their value. At one point the share price touched a low of 85p, compared with Monday's close of 114.5p.

In November 1996 the shares had peaked at 220p.

Struggling

The Body Shop said no formal proposals had been received from Omnilife, a fast-growing seller of direct-to-consumer nutritional supplements.

The Body Shop has 1,840 stores worldwide, of which 477 are company-owned.

Once a firm favourite of High Street shoppers and stock market investors, the Body Shop has been struggling in recent months.

New ranges have not been thought a success while the axing of some old favourites has not been well-received by shoppers.

The company had previously been linked with a possible takeover by former supplier, and now rival chain, Lush.

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See also:

07 Jun 01 | Business
Body Shop in takeover talks
12 Jan 01 | Business
Body Shop shares slump
19 Sep 00 | UK
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